Titagarh Rail to raise ₹200 crore by issuing preferential warrants to promoters

Shares of Titagarh Rail Systems Ltd. are in focus on Thursday, July 10, after the company's board on Wednesday approved the fund raise of up to ₹200 crore on a preferential basis.

The funds will be raised via the issuance of 21.16 lakh warrants, which will be fully convertible into equivalent number of equity shares having a face value of ₹2 each.

The warrants will be issued at a price of ₹945 apiece on a preferential basis to promoter entities, which is nearly the same price at which the stock closed on Wednesday.

Rashmi Chowdhary has been marked as one of the promoter entities who will be issued these warrants. She had a 7.52% stake in the company at the end of the June quarter. That stake, upon warrant conversion, will increase to 8.56%.

Some of the warrants will also be issued to Prithish Chowdhry, who did not have any stake in the company at the end of the June quarter, but will now own 0.39% at the conversion of warrants.

The warrants can be exercised in one or more tranches at any time within 18 months from the date of allotment of the warrants. An amount equivalent to 25% of the consideration will be payable at the time of application and the rest at the time of conversion.

The issue of these convertible warrants is subject to approval from regulatory / statutory authorities and shareholders of the company, as well as other permissions, sanctions and statutory approvals, as may be required.

The extra-ordinary general meeting of the shareholders will be held on August 8, 2025 to seek the necessary approvals from them, the company said.

On another note, Titagarh Rail is ramping up its presence in India's rail transformation journey, with major manufacturing activity underway at its Uttarpara facility near Kolkata. From building lightweight metro coaches to preparing for the upcoming sleeper version of the Vande Bharat Express, the company is assembling some of the most advanced trains in the country.

Among its marquee projects is the Pune Metro, India’s only aluminium-bodied metro coach. Aluminium consumes significantly less energy compared to a stainless-steel coach, but the upfront cost is a little bit higher," Prithish Choudhary, Deputy Managing Director of the company, told CNBC-TV18.

The company is also confident of delivering strong revenue growth and maintaining stable margins in FY26, led by a sharp ramp-up across its freight and passenger rail businesses, despite a weak fourth quarter.

"On a blended basis, we expect margins of 11–12% to be sustainable in FY26,” said Umesh Chowdhary, Vice Chairman and Managing Director, told CNBC-TV18 last month.

Titagarh Rail shares ended the previous session 0.29% lower at ₹941 apiece. The stock has declined 15.1% this year, so far.

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