Titagarh Rail Systems Ltd on Thursday, February 22, announced that its Joint Venture Special Purpose Vehicle (JV-SPV) Shivaliks Mercantile Private Ltd has acquired an additional 28.23% stake in Italy-based Titagarh Firema S.p.A for Euro 20.21 million (about ₹180.33 crore).
The move is aimed at growing capabilities and capacities for various products in India and globally.
After the acquisition, the total shareholding of Shivaliks in Titagarh Firema has gone up to 34.59%, Kolkata-based Titagarh Rail Systems said in a stock exchange filing.
Additionally, Invitalia, an investment arm of the Italian government, has invested Euro 10 million in Titagarh Firema, increasing its stake to 31.01%.
With this, Titagarh Rail Systems' current shareholding in Titagarh Firema is 25.4%.
Titagarh Firema SpA is engaged in the business of designing and manufacturing high-tech rail vehicles such as passenger vehicles in the category of subways, trains, intercity trains and freight vehicles in Italy.
The company reported a turnover of Euro 50.28 million for the financial year 2022-23 and a loss of Euro 19.56 million for the financial year ended March 31, 2023.
Umesh Chowdhary, Titagarh Rail Systems' Vice-Chairman and MD, in an interview with CNBC-TV18 earlier this week, predicted that the company's defence segment will emerge as the third key driver of the company's growth within the next three to four years.
However, the current emphasis remains on the railway sector, including both passenger and freight rail operations.
On February 17, Titagarh secured a ₹170 crore order from the ministry of defence to deliver 250 specialised wagons. The execution of the contract is set to commence 12 months after signing, with completion expected within 36 months.
At 9.42 AM, shares of Titagarh Rail Systems were trading 0.12% lower at ₹959.05 on the BSE.
First Published: Feb 22, 2024 10:38 AM IST
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