Synopsis:
Tega Industries jumped sharply after it announced that it is going to raise over Rs 2,000 crore through a preferential issue of 1.00 crore shares at Rs 1,994 each. Mukul Mahavir Agrawal will invest Rs 100 crore in the business, subscribing to 5.01 lakh shares.
The shares of this mineral processing, material handling equipment, and other equipment manufacturer are in focus as ace investor Mukul Agarwal plans to invest over Rs 100 crore in the business by way of a preferential issue.
With a market capitalization of Rs 13,567 crore, the shares of Tega Industries Ltd made a day high of Rs 2,104.05 per share, up by 4 percent from the day’s low of Rs 2,020 per share. In the last year, the stock has delivered a positive return of 10 percent, outperforming the NIFTY 50’s return of 0.21 percent.
About the Share Issuance
Tega Industries Limited has declared a preferential issue of 1,00,33,090 equity shares at Rs 1,994 per share (including a premium of Rs 1,984), amounting to Rs 2,000.60 crore in total. The Board, through this notification, has also allowed an Extra-Ordinary General Meeting on 10th October 2025 to seek shareholder approval for the allotment.
In this preferential allotment, Mukul Mahavir Agrawal has committed to buying 5,01,504 equity shares, thereby investing Rs 100 crore in the company. Thus, he becomes a shareholder of the company, together with the promoters, institutional investors, and qualified buyers.
The preferential issue of Tega Industries strengthens the capital base and draws the attention of both strategic and institutional investors, who can be a great support for the company’s growth plans. The decision aligns with the firm’s aim of sourcing long-term funds for expansion and operational initiatives.
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Financials Highlights
The company’s revenue for Q1 FY26 came in at Rs 356 crore, slightly up by 5 percent from Rs 340 crore in the same quarter last year. However, on a sequential basis, revenue declined by 34 percent from Rs 536 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit decline of 5 percent to Rs 35 crore in Q1 FY26 as compared to Rs 37 crore in Q1 FY25. Additionally, on a QoQ basis, it declined 66 percent from Rs 102 crore.
The company has delivered an ROE and ROCE of 15.47 percent and 17.80 percent respectively, and is currently trading at a high P/E of 68.31x as compared to its industry average of 37.77x.
Tega Industries Limited is involved in the designing, manufacturing, and installation of mining, mineral processing, and material handling equipment. The company is engaged in the production of grinding, line (e.g., DynaPrime and DynaSteel), conveyor (including skirt sealing and pulley lagging), and wear products such as rubber, steel, or ceramic liners and engineered chutes.
Additionally, the company offers a variety of separation and processing devices such as screens, trommels, and hydrocyclones. Tega Industries has a presence all over the world and caters to the markets of North and South America, Europe, the Middle East, Russia, Africa, Southeast Asia, Australia, and India.
Written by Satyajeet Mukherjee
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