Calcutta-based Titagarh Wagons Ltd has filed its DRHP with SEBI on 17th October 2007 for the issue of public issue consisting of a fresh issue of 37,47,501 Equity Shares and an offer for sale of 3,15,657 equity shares, of a Rs.10 each, at a price to be determined later. The issue comprises a net issue to the public of 40,48,158 equity shares, constituting 21.95% of the post-issue capital.
Kotak Mahindra is the book-running lead manager to the issue. The shares are proposed to be listed on the BSE and NSE.
The company manufactures heavy railway wagons, earth moving and mining equipment and bailey bridges. With the IPO proceeds, the company plans to expand and modernise its Uttarpara and Titagarh facilities.
The company plans to add an EMU manufacturing facility and a machining and wheelset assembly unit at Uttarpara. With GE's investment, Titagarh Wagons plans to improve its production time, which currently stands at 18 months for making one wagon.
The promoters have a 62 per cent stake in the company, which will decrease to around 52-53 per cent after the IPO. GE has a 15 per cent stake, ChrysCapital and Indus Capital hold nearly 20 per cent and other foreign investors the rest. GE has picked up shares with a face value of Rs 10 at Rs 524.
The company is also upgrading the technology used in its products, it plans to incorporate GE's forthcoming VeriWise RAIL asset management technology to manufacture wagons.
Titagarh Wagons is also contemplating entering into a joint venture with Freightcar
The company had an order book of Rs 761 crore at the end of the first quarter of this fiscal.