Texmaco Rail To Acquire Jindal Rail Infra For Rs 615 Crore To Boost Manufacturing Capacity

Texmaco Rail & Engineering Ltd.'s board has approved the acquisition of Jindal Rail Infrastructure Ltd. for Rs 615 crore in an all-cash transaction to ramp up manufacturing capacity.

The acquisition will establish leadership in special-purpose private freight rolling stock—both domestic and international—open opportunities for new product lines, including other rolling stocks, and contribute to its presence in western India along with unique opportunities for enhanced exports, Texmaco Rail said in a statement.

The shares will be acquired from holding companies JITF Urban Infrastructure Service Ltd. and Siddeshwari Tradex Pvt. The deal is expected to be completed in three months.

Part of the $18-billion OP Jindal Group, JRIL is involved in the manufacturing of rail wagons and in designing, engineering, and providing project execution services related to wagons. It reported a turnover of Rs 748.37 crore in the financial year 2024.

The company operates a manufacturing plant in Gujarat's Vadodara, which churned out 1,650 wagons in the last fiscal, with potential to multiply output. It supplies broad gauge freight cars to Indian Railways and private sector, and has developed bogie frames for mainline passenger coaches of railways and floor frame assembly for mainline diesel-electric locomotives, according to the company's website.

An excess of 60-acre of available land bank in Vadodara will power quick capacity expansion in allied businesses such as passenger mobility, while Texmaco’s expertise will allow vertical integration of operations, the company said.

"This acquisition will give Texmaco Rail a significant lead in the freight rolling stock market within the country and on the international rail freight industry map in the shorter term," said Managing Director Sudipta Mukherjee.

Shares of Texmaco Rail closed 5.54% higher at Rs 276.2 apiece ahead of the announcement, as compared to a 0.14% decline in the benchmark BSE Sensex.

(Corrects an earlier version, which misstated the deal value)