Titagarh Wagons to make offer for sale of 4.49% in Cimmco

Titagarh Wagons holds 79.37% and is required to bring it down to at least 75%. It will make an offer for sale (OFS) of 12.27 lakh equity shares of Rs10 each through the exchange route on June 7, the company said.

Jun 06, 2019 08:06 IST India Infoline News Service

Titagarh Wagons
Titagarh Wagons said on Tuesday that the company will divest 4.49% stake in its subsidiary Cimmco Ltd in the open market to pave way for the proposed merger.

Titagarh Wagons holds 79.37% and is required to bring it down to at least 75%. It will make an offer for sale (OFS) of 12.27 lakh equity shares of Rs10 each through the exchange route on June 7, the company said.

Titagarh Wagons Limited (the "Seller"), a part of the promoter group of Cimmco Ltd (the "Company"), being the selling promoter member has submitted to BSE a copy of Notice of Offer for Sale (OFS) of 12,27,415 shares of face value of Rs10 each representing 4.49% of the share capital of the Company on June 6, 2019 ("T day"), (for non-Retail Investors only) and on June 7, 2019 ("T + 1 day") (for Retail Investors and non-Retail Investors who choose to carry forward their un-allotted bids) through a sale on the separate window provided by BSE Limited (the "Sale").

Further, the company will allot 13 shares of Rs2 each for every 24 Cimmco shares, it said in a release to the exchanges.

Stock view:
Titagarh Wagons Ltd ended on Tuesday at Rs68.60, up by Rs0.8 or 1.18% from its previous closing of Rs67.80 on the BSE. The scrip opened at Rs67.50 and touched a high and low of Rs69.30 and Rs67.45 respectively.

Cimmco Ltd ended on Tuesday at Rs33.25, down by Rs0.4 or 1.19% from its previous closing of Rs33.65 on the BSE. The scrip opened at Rs33 and touched a high and low of Rs34.30 and Rs32.85 respectively.

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