Titagarh Rail Systems secures Rs 700cr in QIP from global and domestic institutional investors
Titagarh Rail Systems Limited (TRSL), formerly known as Titagarh Wagons Limited and a key player in India’s technology enterprise, has successfully allotted 75,02,679 Equity Shares to eligible Qualified Institutional Buyers (QIBs). The issue price of Rs. 933 per equity share, including a premium of Rs. 931 per share, aggregates to Rs. 700 Crores. This strategic move is part of TRSL’s unwavering commitment to growth, operational excellence, and environmental sustainability.
The QIP, aimed at raising capital for repayment of outstanding borrowings, funding working capital requirements, and other general corporate purposes, has been substantially oversubscribed. This indicates the domestic and global investor community’s confidence in TRSL’s robust fundamentals. The allotment of equity shares under the issue has attracted several marquee institutional investors, including Government Pension Fund Global, Smallcap World Fund Inc., and The Master Trust Bank of Japan Ltd., as trustee of HSBC India Infrastructure Equity Mother Fund, among others.
Robust Fundraising by Titagarh Rail Systems Paves Way for Growth in Indian Railway Sector
India’s journey towards a 5 trillion-dollar economy carries significant implications for its railway infrastructure, opening immense growth opportunities within the sector. As the economy expands, the demand for efficient transportation networks will amplify, placing railways at the forefront of this evolution. The Indian government’s transformative policies, such as Make in India and Atmanirbhar Bharat, have revolutionized the railway infrastructure landscape, spurring a shift towards self-reliance and indigenous manufacturing in the railway industry.
Commenting on the QIP’s successful completion, Umesh Chowdhary, Vice Chairman and Managing Director of TRSL, expressed gratitude for the overwhelming response. “This demand reaffirms the market’s confidence in Titagarh’s fundamentals, leadership, and business strategies. We are aligned with the Indian Railways’ pace in infrastructure development and the Indian economy’s growth rate,” he said.
The successful completion of the QIP empowers TRSL to fuel strategic initiatives and accelerate its growth trajectory. The company extends gratitude to the government for visionary policies like Make in India and Atmanirbhar Bharat, pivotal in transforming the Indian Railway infrastructure. TRSL remains committed to strengthening operations, bolstering financial health, and enhancing shareholder value, staying excited about future growth possibilities in the Indian railway sector.