Titagarh Rail Systems said on Wednesday that it has raised ₹699.9 crore by issuing fresh shares to qualified institutional buyers.
The issue of Titagarh Rail Systems Ltd (TRSL), formerly known as Titagarh Wagons, opened on December 7 and closed on Tuesday.
"In respect of the issue which opened on Monday, 7th December, 2023 and closed on Tuesday, 12th December, 2023, the Qualified Institutions Placement (QIP) Committee at its meeting held today…approved the issue and allotment of 75,02,679 equity shares to the eligible Qualified Institutional Buyers (QIBs) at the issue price of ₹933 per equity share …aggregating to Rs 69,999.99 lakh," the company said in a BSE filing.
Titagarh intends to utilise the QIP proceeds to repay some outstanding debt, fund some working capital requirements, and for general corporate purposes, the report added.
Nuvama Wealth Management is the book-running lead manager for the QIP.
Titagarh had entered into a strategic alliance with ABB in November for metro projects in the country. The agreement also included the transfer of technology.
Titagarh also plans to increase its production from 700 wagons per month to 1,000 a month by the end of the financial year 2024.
The Kolkata-based company is a leading railway rolling stock manufacturer. In 2015, Titagarh acquired a 100% stake in Titagarh Firema SpA, an Italian company known for manufacturing passenger rolling stock.
Shares of Titagarh Rail Systems have been outperformers in 2023, having gained 119% so far this year. At 12.21 PM, Titagarh Rail Systems share price was trading at ₹1,025.90 apiece on NSE.
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