Texmaco Rail Plans ₹250 Crore QIP to Boost Funds Amidst Growing Rail Demand

22 Mar 2024 , 11:53 AM

Texmaco Rail and Engineering is considering launching a Qualified Institutional Placement (QIP) to secure funds amounting to ₹250 Crore, as reported by CNBC-TV18, citing insider sources.

Presently, Texmaco Rail’s shares are trading marginally higher, around 0.42%, reaching ₹166.25 on the NSE.

The company plans to offer approximately 4.21% of its equity shares for the QIP, aiming to raise capital at an indicative price of ₹155 per share, representing a discount of over 6% from its previous closing price.    

Nuvama Wealth Management has purportedly been appointed as the sole Book Running Lead Manager for this QIP.  

In February of the current year, Texmaco Rail and Engineering unveiled its target to fulfill 3,400 rail wagon orders by the first quarter of the fiscal year 2025, leveraging its robust future order book position.  

During a discussion with CNBC-TV18, Indrajit Mookerjee, the Executive Director and Vice Chairman of Texmaco Rail and Engineering, expressed confidence in the company’s capability to achieve this objective by June 2024.  

As of December 2023, the company’s freight car order book amounted to ₹5,700 Crore. Mookerjee anticipated further orders and tenders from Indian Railways, emphasizing the company’s readiness to meet the escalating demand not only from the public sector but also from the private sector. This surge in demand is driven by the country’s growing necessity for freight cars to transport essential commodities, leading to increased demand across both sectors.

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