Tega shares drop 4% as co buys Molycop in $1.5 billion deal; stock still up 73% from 52-WL
On Thursday, the stock dropped 3.9 per cent to hit the day’s low of Rs 1,997.15 apiece on the BSE, over its previous close of Rs 2,079.65. At 9:45 am, Tega shares were down 0.48 per cent at Rs 2,066.80.
- Sep 11, 2025,
- Updated Sep 11, 2025 10:03 AM IST
Shares of Tega Industries Ltd slipped 4 per cent in Thursday’s trade after the company said it would acquire Molycop, in partnership with Apollo Funds, in a deal pegged at an enterprise value of around $1.5 billion.
In a filing to the stock exchanges, Tega Industries said it has entered into a term sheet with funds managed by affiliates of Apollo to acquire Molycop, a leading global supplier of grinding media for the mining industry, from an affiliate of American Industrial Partners (AIP).
On Thursday, the stock dropped 3.9 per cent to hit the day’s low of Rs 1,997.15 apiece on the BSE, over its previous close of Rs 2,079.65. At 9:45 am, Tega shares were down 0.48 per cent at Rs 2,066.80, while the company’s market capitalisation stood at Rs 13,903 crore. The stock is currently trading around 73 per cent above its 52-week low of Rs 1,205.75.
The company noted that the acquisition will help establish Tega as one of the world’s leading designers and manufacturers of critical consumables for mining, mineral processing and material handling. Together, Tega and Molycop delivered $1.73 billion (Rs 15,207 crore) in revenue and $217 million (Rs 1,906 crore) in EBITDA in their latest annual audited financials, it said.
Commenting on the deal, Mehul Mohanka, Managing Director and Group CEO of Tega Industries, said, “I am glad to see that the day has arrived in Tega's 50th anniversary year. With this strategic acquisition, and in partnership with Apollo Funds, we will accelerate innovation, greatly expand market reach and create significant value for our customers.”
Apollo Partner Gaurav Pant added, “This transaction will position the Molycop and Tega organisations to invest in additional technology and capabilities, and to continue their commitments to deliver reliable, high-quality products and solutions to industrial customers.”
Once completed, Tega will become the controlling shareholder of Molycop, while Apollo Funds will hold a significant minority stake. The company said its focus in the first eight quarters post closure would be on operational and business integration. The combined entity will operate 26 manufacturing sites worldwide, enabling a broader mill optimisation solution for customers.
On the technical front, Tega Industries shares are trading above their 5-, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The stock’s one-year beta stands at 0.7, reflecting low volatility during the period.
The deal is expected to close by December 31, 2025, subject to regulatory approvals. Advisors to the transaction include Argus Partners, Latham & Watkins LLP, J.P. Morgan and PwC.
Shares of Tega Industries Ltd slipped 4 per cent in Thursday’s trade after the company said it would acquire Molycop, in partnership with Apollo Funds, in a deal pegged at an enterprise value of around $1.5 billion.
In a filing to the stock exchanges, Tega Industries said it has entered into a term sheet with funds managed by affiliates of Apollo to acquire Molycop, a leading global supplier of grinding media for the mining industry, from an affiliate of American Industrial Partners (AIP).
On Thursday, the stock dropped 3.9 per cent to hit the day’s low of Rs 1,997.15 apiece on the BSE, over its previous close of Rs 2,079.65. At 9:45 am, Tega shares were down 0.48 per cent at Rs 2,066.80, while the company’s market capitalisation stood at Rs 13,903 crore. The stock is currently trading around 73 per cent above its 52-week low of Rs 1,205.75.
The company noted that the acquisition will help establish Tega as one of the world’s leading designers and manufacturers of critical consumables for mining, mineral processing and material handling. Together, Tega and Molycop delivered $1.73 billion (Rs 15,207 crore) in revenue and $217 million (Rs 1,906 crore) in EBITDA in their latest annual audited financials, it said.
Commenting on the deal, Mehul Mohanka, Managing Director and Group CEO of Tega Industries, said, “I am glad to see that the day has arrived in Tega's 50th anniversary year. With this strategic acquisition, and in partnership with Apollo Funds, we will accelerate innovation, greatly expand market reach and create significant value for our customers.”
Apollo Partner Gaurav Pant added, “This transaction will position the Molycop and Tega organisations to invest in additional technology and capabilities, and to continue their commitments to deliver reliable, high-quality products and solutions to industrial customers.”
Once completed, Tega will become the controlling shareholder of Molycop, while Apollo Funds will hold a significant minority stake. The company said its focus in the first eight quarters post closure would be on operational and business integration. The combined entity will operate 26 manufacturing sites worldwide, enabling a broader mill optimisation solution for customers.
On the technical front, Tega Industries shares are trading above their 5-, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The stock’s one-year beta stands at 0.7, reflecting low volatility during the period.
The deal is expected to close by December 31, 2025, subject to regulatory approvals. Advisors to the transaction include Argus Partners, Latham & Watkins LLP, J.P. Morgan and PwC.