TWL to raise Rs 144 cr via IPO, opening on Mar 24

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Mumbai, Mar 14 (UNI) West Bengal-based railway wagon manufacturing private company, Titagarh Wagons Limited (TWL) today said it will raise Rs 144 crore, at upper price band, through an initial public offering (IPO), opening for subscription on March 24.

The issue, comprising 23.83 lakh equity shares in a fixed price band between Rs 540 and Rs 610 per share, will close on March 27, the Company said.

The Company will raise the amount by diluting its 12.9 per cent stake and proceeds of the fresh issue will be utilised for modernisation of the existing units as well as setting up new units in West Bengal, TWL Managing Director Umesh Chowdhary told reporters.

''TWL plans to foray into passenger wagons for local trains including EMUs and for our new venture of manufacturing wheel and axle sets for the wagons, we are setting up a new unit at Uttarpara in Greater Kolkata,'' he said.

The Uttarpara unit also manufactures heavy earth moving and mining equipments. As an industry partner to Defence Research and Development Organisation (DRDO), the Company also manufactures other products for Indian defence establishments, Mr Chowdhary added.

When asked about the success of the issue on account of the present capital market turmoil, J M Financial Consultants Managing Director Atul Mehta said, ''TWL has best of investors' including Chrys Capital, GE Capital, J P Morgan and Blackstone, who have made many subsequent investments at higher price level like Rs 671 per share.'' He further said that the price band fixed by the Company is much lower than at what the investors have invested. ''Lower price provides an indication that a lot of money has been left on the table for the investors,'' Mr Mehta added.

Blackstone had recently picked up shares in the Company as the fifth major investor in Titagarh Wagons. The other investors include GE Capital Infrastructure with 15.5 per cent stake, JP Morgan with 5 per cent stake and Chrys Capital with 6.5 per cent stake.


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