Titagarh Rail Systems Ltd to raise ~₹200 crore Funds through Preferential Issue of Warrants

Titagarh Rail Systems Limited has announced plans to raise ~₹200 crore through a preferential allotment of 21,16,402 convertible warrants to members of its Promoter Group. The Board of Directors approved the proposal at its meeting held on 9 July 2025, subject to requisite approvals.

Fund raising details:

Titagarh will issue 21,16,402 warrants, each convertible into one equity share of face value ₹2, at a floor price of ₹945 per warrant. The entire issue, aggregating ~₹200 crore, is being made to members of Promoter Group - Mrs. Rashmi Chowdhary and Mr. Prithish Chowdhary on a preferential basis in accordance with Chapter V of the SEBI ICDR Regulations.

Key terms:

- Issue size: 21,16,402 warrants amounting to ₹199,99,99,890.
- Warrant exercise price: ₹945 per warrant
- Deposit amount: 25% on application; balance 75% on conversion
- Conversion period: Within 18 months from allotment

Purpose of Funds

Proceeds from the issue will be deployed for various purposes including the following:

- Planned investment in state-of-the art plant and machinery
- Support working capital to enhance chances of new order wins
- Invest in technology and automation for future‐ready rail solutions
- Other permissible general corporate and administrative purposes

Extraordinary General Meeting

An Extraordinary General Meeting (EGM) of shareholders is scheduled on 8 August 2025 via video conferencing to seek approval for the proposed preferential issue of warrants.

Commenting on this development, Mr. Umesh Chowdhary, Vice Chairman and Managing Director, Titagarh Rail Systems Limited said: "The Board approval dated 9th July 2025 underlines our commitment to efficient capital allocation and reinforces promoter confidence in Titagarh Rail's growth trajectory. The fresh capital will accelerate capacity expansion, bolster working capital, and support our strategic initiatives to capture the rising demand in freight and passenger rolling stock."

Shares of Titagarh Rail Systems Limited was last trading in BSE at Rs. 929.60 as compared to the previous close of Rs. 949.80. The total number of shares traded during the day was 101577 in over 4714 trades.

The stock hit an intraday high of Rs. 949.75 and intraday low of 925.70. The net turnover during the day was Rs. 95038710.00.

Source : Equity Bulls

Keywords

TitagarhRailSystems INE615H01020 FundRaising PreferentialIssue