Tega to raise Rs 3,300 crore to fund 77% buy in Molycop
Times of India | 15 September 2025
Kolkata: Tega Industries will raise Rs 3,300 crore to fund its acquisition of US-based mining equipment-maker Molycop, in consortium with NYSE-listed Apollo which manages funds worth over $840 billion.
The board of the Kolkata-based maker of mining and mineral-processing gears approved raising Rs 4,000 crore on Saturday.
The total cost of the acquisition will be over Rs 13,400 crore. Tega will hold 77% stake in the company as well as management control while Apollo will hold the remaining.
Mehul Mohanka, managing director of Tega Industries, told TOI that the company will raise Rs 2,300 crore as equity and the remaining Rs 1,000 crore through debt.
"The entire Rs 3,300 crore would be our equity in Molycop, which would be 77%," Mohanka said.
According to Mohanka, the total equity consideration in the acquisition is Rs 4,300 crore with the remaining Rs 9,000 crore debt on the books of Molycop. Apollo will be putting up Rs 1,000 crore in equity and Rs 2,400 crore for debt reduction of Molycop to less than Rs 7,000 crore.
"Apollo will be doing the debt financing through perpetually non-convertible preference shares," said the Tega MD, adding that the debt will be on Molycop's balance sheet and will not impact Tega's balance sheet.
"We are also refinancing the loan of the US company," he added.
Molycop is a leading global supplier of grinding media to the mining industry with a focus on manufacture and sale of grinding media for use in both semi-autogenous grinding (SAG) units and ball mills. These products are critical to mineral extraction and processing of multiple minerals, specifically copper and gold.