Titagarh Wagons hits upper circuit

Titagarh Wagons is frozen on the 10% upper circuit at Rs.99.40, with over 15,000 sell orders pending on the counter. Volumes are up four times at 45,000.

In this falling market, this stock has hit the upper circuit on news that the company has decided to cancel its demerger plans. The company had finalized plans last year to demerge its rail coaches division into an existing subsidiary of Titagarh Wagons. The subsidiary was to allot 12 equity shares to the equity shareholders of Titagarh Wagons for every 100 shares held by them. The low order flow from Indian Railways has forced the company to scrap this demeger plan. The market is happy with this news and obviously cheered it by hitting the upper circuit.