Titagarh Wagons plans to raise $288 million through preferential allotment.
Titagarh Wagons declared its intention to fund $288.8 crore by issuing preferred shares to Smallcap World Fund Inc. The company’s board of directors authorised this strategic action, which intends to improve its financial condition.
The proposal calls for the issue of 76 lahks preferentially offered equity shares with a face value of 2 apiece. According to the regulatory requirements established in the Securities and Exchange Board of India (Issuance of Capital and Disclosure Requirements) Regulations, 2018, the shares would be priced at Rs. 380 per share, above the floor price of Rs. 347.68 per share.
“The funds will be raised through the issuance of up to 76,00,000 Equity Shares with a face value of Rs. 2/- each to SMALLCAP WORLD FUND INC on a preferential basis,” Titagarh Wagons stated in a regulatory filing. The shares would be offered at Rs. 380/- per share, above the Chapter V of the Securities and Exchange Board of India (Issuance of Capital and Disclosure Requirements) Regulations, 2018’s floor price of Rs. 347.68 per share. The maximum amount that must be raised is Rs. 288,80,000.
This strategy must still have the blessing of legislative and administrative bodies, as well as the company’s shareholders at the Extra-Ordinary General Meeting (EGM). Additionally, the required authorizations, penalties, and statutory approvals must be secured.
When Titagarh Wagons reported a net profit of 53.01 crores in March 2023, they displayed excellent financial success. In comparison to the net profit of Rs. 21.05 crore attained in March 2022, this amount shows a spectacular increase of 151.87 percent. In addition, the company’s net revenues, which were reported at 974.22 crores, represented a remarkable increase of 132.56 percent over the 418.90 crores recorded in March 2022.
On Friday, Titagarh Wagons’ stock price closed at 421.95 on the BSE, a significant rise of 6.81 percent.
With the help of Smallcap World Fund Inc., Titagarh Wagons hopes to strengthen its financial situation by using this preferential allotment approach. This action indicates the company’s dedication to pursuing sustainable growth and seizing market chances in the wagon manufacturing industry.
About Titagarh Wagons:
Titagarh Rail Systems, formerly Titagarh Wagons Limited, is a well-known Indian business that specialises in shipbuilding, defence, and the production of railway wagons. The firm, which has its headquarters in Kolkata, West Bengal, is well known for creating excellent coaches for the Indian Railways as well as bailey bridges and mining machinery.
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