Tega Industries Ltd. on Saturday announced that its board has cleared proposals to raise as much as Rs 4,000 crore through equity and equity-linked instruments, as per an exchange filing.
The Kolkata-based mining and material handling solutions company said the fundraising will be carried out in one or more tranches, depending on market conditions and business needs.
The capital will be raised through permissible routes including public issues, preferential allotments, private placements, or Qualified Institutional Placements, as per the filing. The final structure, timing, pricing, and choice of investors will be decided in consultation with merchant bankers and subject to shareholder and regulatory approvals.
Alongside the fundraising, the board has also approved enhancing the company’s borrowing powers by Rs 2,000 crore. This step will allow Tega Industries to expand its debt capacity to meet growth requirements and strengthen its balance sheet.
In another enabling resolution, the company’s board approved increasing the overall ceiling on investments, loans, guarantees, or financial support to other entities up to Rs 4,000 crore.
The board further authorised the management to create charges, hypothecation, mortgages, or pledges on the company’s assets, both present and future, to secure borrowings. This may also extend to creating charges on substantially the whole of its undertakings, a common requirement for lenders while extending large credit lines.
The company had also recently agreed to buy control of Omaha-based mining equipment maker Molycop at an enterprise valuation of $1.5 billion, making it the biggest US deal by an Indian company in three years.
Tega will acquire the American Industrial Partners-affiliate in consortium with funds managed by Apollo Global Management Inc., it said in a statement to exchanges on Wednesday. Tega Industries will be the controlling holder of Molycop with a 77% stake and Apollo will own the remaining.
