Titagarh Wagons (TWL), a private sector railway wagon manufacturer in India, primarily engaged in the business of manufacturing railway wagons, heavy earth moving and mining equipment, bailey bridges, steel and SG iron castings, has opened for subscription with its initial public offering (IPO) of 23,83,768 equity shares of Rs 10 for cash at a price to be determined through 100% book building process. The issue will close on March 27, 2008. The price band has been fixed between Rs 540 and Rs 610 per equity share.
The issue comprises a fresh issue of 20,68,111 equity shares and an offer for sale of 3,15,657 equity shares by Mrs Rashmi Chowdhary and Strategic Ventures Fund (Mauritius) Limited (the selling shareholders). The issue consists of a net issue of 23,68,768 equity shares and a reservation of up to 15,000 equity shares for subscription by eligible employees. The net issue will constitute 12.8% of the post issue capital of the company.
The objects of the Issue are to utilise the proceeds of the Fresh Issue towards the purposes of a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
The order book of the cmpany stands at Rs 7,531.1 million with the rolling stock division constituting nearly Rs 6,693.9 million as on January 31, 2008.
The Company proposes to list its equity shares on the Bombay Stock Exchange and the National Stock Exchange. The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co-book running lead manager is JM Financial Consultants Private Limited.
Source: Moneycontrol.com
Monday, March 24, 2008
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