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Titagarh Wagons forays in metro coach, high-speed train manufacturing

16 Jul 2015 Evaluate

Titagarh Wagons (TWL), one of the leading private sector wagon manufacturers in India, has forayed in the metro coach and high-speed train manufacturing with the acquisition of the business of Firema Trasporti S.p.A. based in Italy. The transaction entails transfer of technology, all tangible and intangible assets and some liabilities relating to ongoing orders.

The business has been acquired through a SPV Titagarh Firema Adler S.p.A. registered in Milan, Italy (TFA) in which TWL holds 90% stake and balance 10% by Adler Plastics S.p.A a part of a leading Italian group with a revenue of above a billion Euro. The funding of about Euro 20-25 million for the acquisition, new investment and operations of the company is planned primarily from internal accruals as well as some proposed external borrowings by Titagarh Singapore, the wholly-owned Singapore subsidiary of Titagarh wagons.

The company also successfully concluded issuance of equity shares by way of a QIP. The Issue was oversubscribed by 1.9 times base book. The company allotted 15089025 equity shares of face value of Rs 2 each at Rs 99.41 per share aggregating Rs 150 crore. Part of the proceeds will be utilised to upgrade the Indian coach manufacturing facilities in order to absorb the technology from the newly acquired unit, and cater to the booming Indian market for metro coaches and other trains. The local partner, Adler Plastics will help coordinate and provide necessary local support and relationships, and will also provide modern interiors for the trains.

Titagarh Wagons is engaged in the business of manufacturing Railway Wagons, EMU (Rail Coaches), Bailey Bridges, Heavy Earth, Moving and Mining Equipment, Steel and SG iron castings of moderate to complex configuration etc.

Titagarh Railsystems Share Price

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