Tega Industries gets ICRA A+ rating; outlook placed on watch over Molycop acquisition

Tega Industries Ltd has informed exchanges that ICRA Limited has assigned an [ICRA]A+ long-term rating and [ICRA]A1 short-term rating to the company’s bank facilities, while placing the ratings on “Watch with Developing Implications” due to the proposed acquisition of Molycop in partnership with Apollo Funds.

According to the ICRA rationale dated May 19, 2026, the ratings action follows Tega Industries’ proposed acquisition of AIP MC Holdings LLC (Molycop), a global supplier of grinding media. Tega had entered into a definitive agreement with Apollo Funds on November 28, 2025, to acquire Molycop at an enterprise value of nearly $1.455 billion.

ICRA said Tega Industries will acquire around 84.18% equity stake in Molycop valued at approximately $394 million, while the remaining stake will be acquired by Apollo Funds. To fund the transaction, Tega has already raised nearly ₹1,713 crore through equity, while the remaining funding requirement is expected to be met through a proposed term loan of ₹1,500 crore along with internal accruals.

The ratings agency noted that Apollo Funds will also infuse around $270 million through perpetual redeemable preference shares to support deleveraging of Molycop’s existing debt. Tega Industries expects completion of the transaction by June 2026, subject to pending regulatory approvals.

ICRA highlighted that the proposed acquisition is expected to strengthen Tega Industries’ scale, improve its global market positioning and create operational synergies through product complementarities and cross-selling opportunities. The agency added that grinding media and mill liners are complementary products, allowing the combined entity to offer integrated solutions across mining operations.

However, ICRA also cautioned that the company’s leverage and coverage metrics are likely to moderate in the near-to-medium term because of the sizeable debt-funded acquisition and Molycop’s existing debt burden. The agency expects consolidated debt-to-OPBDITA to remain elevated over the next two years before gradually improving through repayments, earnings growth and possible asset monetisation.

ICRA further said Tega Industries benefits from a diversified global presence across more than 90 countries and operates manufacturing facilities in India, Chile, South Africa and Australia. The company’s business profile also remains supported by a healthy order book and strong export exposure.

As per the filing, the ratings assigned cover total bank facilities of ₹2,000 crore.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.