The flagship company of the Adventz Group, Texmaco Rail and Engineering Ltd, is likely to launch a Qualified Institutional Placement (QIP) with a base issue size of ₹250 crore, sources close to the development said.
The company is aiming to dilute 4.21% of the equity, sources in the know told CNBC-TV18. The indicative price for the QIP is ₹155, set at a discount of 6.4% to the closing price, according to multiple people familiar with the development.
The sole Book Running Lead Manager (BRLM) for this QIP is Nuvama Wealth Management Ltd, said people familiar with the matter.
In February this year, Texmaco Rail and Engineering said it aims to deliver 3,400 rail wagon orders in the first quarter of the next financial year (Q1FY25) riding on a healthy future order book position.
In an interview with CNBC-TV18, the Executive Director and Vice Chairman of Texmaco Rail and Engineering, Indrajit Mookerjee said the company is well on track to deliver 3,400 rail wagon orders by June 2024.
As of December 2023, the company’s freight car order book stood at ₹5,700 crore. The company expects more orders and tenders to come from Indian Railways but is confident of the demand pool from the private sector because the country needs more freight cars for the transportation of essential goods so there are requirements from both segments, according to Mookerjee.
Texmaco Rail and Engineering has two manufacturing facilities, one fully loaded, while the other can be squeezed out for more. The company is in the range of 800 wagons per month, steeply up from 250 wagons a few years ago, while its immediate target is producing 1000 wagons a month, which it expects to achieve in a month or two.
Shares of Texmaco Rail & Engineering Ltd ended at ₹165.40, up by ₹8.10, or 5.15% on the BSE.
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