The Italian government and a UAE-based private equity firm have together picked up almost 44 per cent stake in Titagarh Wagons' fully-owned subsidiary Firema SpA. The company saw a 'recapitalisation of Euro 20 million through fresh equity infusion', raising the total capital to Euro 33 million. Invitalia, the Italian government's investment promotion agency, pumped in Euro 10 million for a 30.30 per cent stake, and the UAE-based PE firm - Hawk Eye DMCC - picked up a 13.64 per cent shareholding for Euro 4.5 million. The rest Euro 5.5 million has been infused by a Titagarh Group company.
The recapitalisation of Euro 20 million provides a fresh lease of life for the Italian company which will now be able to turn around and tap huge railway opportunities with branding and strategic value addition by Invitalia. This investment will allow Firema to develop its business. The recapitalisation will also help the company achieve its target of reaching a monthly production of 20 EMU coaches and become a high-quality manufacturer of train coaches for Europe. With the recapitalisation, the Titagarh Wagons' stake in Firema SpA reduces to 49.7 per cent and hence, Titagarh Firema SpA ceases to be a subsidiary of the Indian engineering company.
Titagarh Wagons is the largest private sector manufacturer of railway coaches (EMUs, MEMUs) and the largest wagon maker (other than Railways).
| Company Name | CMP |
|---|---|
| Texmaco Rail & Eng. | 106.04 |
| Jupiter Wagons | 286.15 |
| Titagarh Railsystems | 741.05 |
| Jessop & Co | |
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