Titagarh Rail Plans Rs 700 Crore Fundraise Through QIP

Titagarh Rail Systems Ltd. will raise up to Rs 700 crore through qualified institutional placement, following board approval.

The fundraising will be done in one or more tranches, subject to regulatory and statutory approvals, the company said in an exchange filing on Wednesday. It will also seek shareholders' nods through an extraordinary general meeting.

The wagon manufacturer said proceeds from the QIP will be used to strengthen the company's position in its core businesses and to fund future growth initiatives.

The board also constituted a committee to scout a partner for the shipbuilding, bridges and defence business. The committee will also seek assistance from external advisors or merchant bankers for this purpose.

Currently, wagons and rail passenger coaches are the company's core operations.

There will be no capital allocation for the shipbuilding business for the next couple of years, but the company will be executing old orders, the company's Vice Chairman and Managing Director, Umesh Chowdhary, told BQ Prime last month.

“The shipbuilding business will be a booster for growth once the passenger rail and freight rail systems are fully stabilised,” he said.