Tega Industries Limited has informed the Exchange about disclosure pursuant to Reg. 30 of the SEBI (LODR) Regulations, 2015.
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Tega Industries' board approved a borrowing facility of up to INR 1,500 Crores from Standard Chartered Bank and other lenders to finance the proposed acquisition of Molycop. The facility will enable Tega MC Investment Pte. Ltd. (a wholly owned Singapore subsidiary) to subscribe to shares in Tega MC JV Holdings Pte. Ltd. Additionally, the company approved investing up to USD 5 million in Tega MC Investment Pte. Ltd. via optionally convertible redeemable preference shares (OCRPS) to meet future contingencies and operational expenses. Both investments qualify as related party transactions and are on an arm's length basis.
The large debt facility signals significant financial commitment toward the Molycop acquisition, which could increase leverage. Shareholders should monitor the debt quantum relative to the company's existing capital structure.