Titagarh Wagons fixes issue price of its IPO at Rs 540

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Mumbai, Apr 1 (UNI) Titagarh Wagons Limited (TWL), a private sector railway wagon manufacturer in India, has fixed the issue price of its IPO at Rs 540 per equity share.

The IPO offering 2,38 million shares was subscribed 6.75 times at its closing on March 27 with the retail portion subscribed 0.98 times, the Qualified Institutional Buyers subscription being 10.37 times and the non institutional bidder portion subscribed at 2.77 times.

The issue comprises a fresh issue of 20,68,111 equity shares and an offer for sale of 3,15,657 equity shares by Rashmi Chowdhary and Strategic Ventures Fund (Mauritius). The issue consists of a net issue of 23,68,768 equity shares and a reservation of up to 15,000 equity shares for subscription by eligible employees. The net issue constitutes 12.8 per cent of the post issue capital of the Company.

The proceeds of the fresh issue would be used for setting up an EMU manufacturing facility at Uttarpara unit, modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an axle machining and wheelset assembly facility at Uttarpara unit, constructing a corporate office and a design cum research and development office, strategic acquisition or investments and brand building exercise.

TWL operates two manufacturing facilities located at Titagarh and Uttarpara, in West Bengal. The Uttarpara unit functions as its second manufacturing plant for wagons in addition to manufacturing heavy earth moving and mining equipment. As an Industry Partner to the Defence Research and Development Organisation, Ministry of Defence (DRDO), the Company also manufactures other products for the Indian Defence establishment, such as special purpose wagons, shelters and other engineering equipment.

UNI VK NM AG1855

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