Tega Inds' resolution plan gets NCLT approval for acquiring McNally Sayaji Engineering

Tega Industries said that National Company Law Tribunal (NCLT) has approved its resolution plan for the acquisition of McNally Sayaji Engineering (MSEL) through Corporate Insolovency Resolution Process (CIRP) process.

The acquisition is expected to be completed over the next two months. The financing for the acquisition will be through an optimal mix of internal resources and debt.

Tega has a strong presence in the global mining and minerals sector and has been growing sustainably. The Company is seeking to expand its product offerings to grow its business globally and in India. This acquisition is expected to enhance value for the Company and its shareholders, marked by revenue growth and margin expansion opportunities in medium term.

MSEL, known for manufacture and sales of crushing, screening, grinding, material handling, and mineral processing equipment, is a prominent 'value player' in the competitive Indian market. Tega's market leadership and its marquee customer relationships are expected to increase MSEL's global footprint.

The value addition to Tega from the acquisition is expected to enhance margins, which could translate into enhanced market share and profitability. This acquisition is expected to position the company among the most integrated global companies in its space, strengthening its brand and visibility as a global solutions provider

Mehul Mohanka, managing director & group CEO said: The global market for mining and mineral products is increasingly competitive, putting a premium on the need to moderate costs and enhance margins.

The acquisition of MSEL represents a win-win proposition for Tega and its customers. The acquisition of a complementary business is expected to enhance our competitiveness on the one hand and strengthen customer service on the other.

The Tega-MSEL combination will enhance synergies related to shared technology, technical knowledge, larger product profile, after-sales service, and efficient working capital management. Besides, the acquisition is likely to translate into quicker growth, improved capital access, and attractive long-term value-creation for our stakeholders.

Tega Industries is engaged in the activity of designing, manufacturing and installation of process equipment and accessories to cater the mineral processing, mining, material handling and environment industries.

The company's consolidated net profit jumped 44% to Rs 48.37 crore on 15.2% rise in net sales to Rs 296.93 crore in Q3 FY23 over Q3 FY22.

The scrip rose 0.77% to settle at Rs 643 on Friday 24 February 2023.

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