Tega Industries Limited has informed the Exchange about Credit Rating
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ICRA has assigned A+ (long-term) and A1 (short-term) ratings to Tega Industries' bank facilities totaling Rs. 2,000 crore. The ratings have been placed on Watch with Developing Implications due to the company's proposed acquisition of Molycop (AIP MC Holdings LLC) in partnership with Apollo Funds at an enterprise value of ~$1.455 billion. Tega will acquire ~84.18% stake valued at ~$394 million, funded by a Rs. 1,713 crore equity raise, Rs. 1,500 crore term loan, and internal accruals. ICRA expects consolidated debt/OPBDITA to remain elevated over the next two years due to the debt-funded acquisition and Molycop's existing debt of ~Rs. 9,650 crore. The rating watch will be resolved upon receipt of pending regulatory approvals and successful completion of the transaction by June 2026.
The rating watch signals uncertainty around the large acquisition's impact on credit metrics. While the company retains its investment-grade rating, shareholders should monitor the deal's completion, integration execution, and subsequent leverage levels as consolidated debt will rise significantly.