Titagarh Rail Systems Ltd., the Kolkata-based manufacturer of railway components, including wagons has launched a Qualified Institutional Placement (QIP) to raise ₹700 crore.
The company has fixed the floor price of the QIP at ₹976.1, according to the exchange filing. The floor price is almost at par with the stock's closing price of ₹983 on Thursday.
Sources also told CNBC-TV18 that the QIP indicative price is likely to be ₹933 per share, which is a 4.4% discount from the closing price and a 5.2% discount from Thursday's closing price.
The company intends to utilise the QIP proceeds to repay some outstanding debt, fund some working capital requirements and for general corporate purposes, the sources said.
Nuvama Wealth Management is the book-running lead manager for the QIP.
In an interaction with CNBC-TV18 in November, Umesh Chowdhary of Titagarh Rail mentioned that the company has a strategy to backward integrate its Metro Propulsion business and that its current orders for the Gujarat Metro will be executed using ABB's propulsion system.
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. Chowdhary had mentioned that the company plans to invest ₹250 crore to ₹300 crore in the propulsion system.
The company also plans to increase its production from 700 wagons per month to 1,000 a month by the end of the financial year 2024.
Shares of Titagarh Rail Systems have been outperformers in 2023, having gained 110% so far this year.
(With Inputs From Abhishek Kothari.)
(Edited by : Amrita)
First Published: Dec 8, 2023 6:45 AM IST
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