Tega Industries to issue shares worth ₹2,000 crore to Mukul Agarwal, Tata MF; Stock falls 4%

The Board of Tega Industries Ltd. on Thursday, September 18, approved the issue of 1 crore equity shares through a preferential allotment at ₹1,994 per share, representing a 6% discount to the previous close. The issue size aggregates to about ₹2,000.6 crore.

Promoters will participate in the issue, while proposed allottees include prominent investors such as Mukul Agarwal, and institutional players like Tata Mutual Fund, Bandhan Mutual Fund, Tata AIA Life Insurance, and ICICI Prudential Mutual Fund.

The preferential issue follows the company's earlier in-principle approval on September 13 to raise up to ₹4,000 crore via a mix of equity, convertible securities, and debt.

Last week, Tega had also announced plans to acquire Molycop for $1.48 billion, with Apollo Funds set to join as a minority investor.

The company will seek shareholder approval for the preferential issue at an extraordinary general meeting (EGM) scheduled for October 10, 2025.

Despite the fundraising move, shares of Tega Industries slipped nearly 4% to ₹2,036.80 on Thursday. The stock, however, remains a strong outperformer, having rallied more than 50% in the past six months.