Synopsis: Titagarh Rail Systems will raise nearly Rs. 200 crore via preferential issue of 21.16 lakh warrants to promoters Rashmi and Prithish Chowdhary, convertible into equity shares over 18 months.
During Thursday’s trading session, shares of a leading comprehensive mobility solution provider with a strong presence in India and Italy surged nearly 2 percent on BSE, after the company’s Board approved a fund raise of Rs. 200 crores to the Promoter Category on a preferential basis.
With a market cap of Rs. 12,823.6 crores, at 10:49 a.m., the shares of Titagarh Rail Systems Limited were trading in the green at Rs. 952.2 on BSE, up by nearly 1.2 percent, as against its previous closing price of Rs. 941. The stock has delivered negative returns of around 45 percent in one year, but has gained by nearly 1 percent in the last one month.
What’s the News
According to the latest exchange filings, the Board of Titagarh Rail Systems Limited has approved the raising of funds to nearly Rs. 200 crores to the promoter category on a preferential basis.
The company will issue and allot up to 21.16 lakh warrants, convertible or exchangeable into an equivalent number of fully paid-up equity shares having a face value of Rs. 2 each, each at a price of Rs. 945 per warrant. The warrants will be allotted to Rashmi Chowdhary and Prithish Chowdhary, who are part of the company’s Promoter Group.
As of March 2025, Rashmi Chowdhary held a 7.52 percent stake in the company, and if all her allotted warrants are converted, her holding will increase to 8.56 percent. Meanwhile, Prithish Chowdhary, who did not hold any shares, would now own a 0.39 percent stake following the conversion of his warrants.
Each warrant will be converted into one equity share of Rs. 2 each, and this conversion can be done in one/more phases within 18 months from the date of allotment, as per the terms and conditions set by the company. To subscribe to these warrants, 25 percent of the total amount shall be payable at the time of application, while the remaining 75 percent will be payable at the time of conversion into equity shares.
Financials, order book & More
Titagarh reported a decline in its revenue from operations, showing a year-on-year fall of around 4 percent from Rs. 1,052 crores in Q4 FY24 to Rs. 1,006 crores in Q4 FY25. Similarly, its net profit decreased during the same period from Rs. 79 crores to Rs. 64 crores, representing a decline of around 19 percent YoY.
On 26th June 2024, BlackRock Global Funds, one of the funds managed by BlackRock Inc., the world’s largest asset manager, purchased a 1.61 percent stake in Titagarh Rail through block deals. The acquisition involved purchasing 21.73 lakh equity shares at an average price of Rs. 1,618 per share, totalling Rs. 351.62 crores. Prior to this acquisition, BlackRock had no investments in Titagarh or any other Indian railway stocks.
As of March 2025, Titagarh’s order book stood at Rs. 24,526 crores, including the share from the joint venture (JV). The order book consists of orders for ~11,500 wagons and 1,583 Metro and Vande Bharat coaches. It received more than Rs. 1,200 crores worth of orders in FY25 across business segments.
Formerly known as Titagarh Wagons, the company manufactures and sells passenger coaches, metro trains, freight wagons, train electricals, steel castings, specialised equipment & bridges, ships, etc.
With a footprint in both India and Europe, especially after acquiring Italy-based Firema, Titagarh has positioned itself as a global player in the railway and metro segment. It holds a market share of ~25 percent in the wagon manufacturing sector and is the only Indian company that manufactures both wagons and coaches.
Written by Shivani Singh
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