Titagarh Wagons chugs along

Titagarh Wagons opened almost 5% higher today at Rs.163.75, rising further to an intraday high at Rs.164.50 where profit booking came in and the stock is now trading at Rs.160 levels, up some 2.5%. Its 52-week high is at Rs.177.80.

The stock price jumped up after it stated that Government of Italy, through its investment arm, Invitalia. has taken a strategic stake in Titagarh Firema Spa (TFA), the subsidiary of Titagarh Wagons. The Italian Govt will subsequently own 30.30% stake for an investment of Euro 10 million.

This apart, UAE based PE fund, Hawk Eye DMCC has also invested Euro 4.5 million and acquired 13.64% stake in the company.

The existing promoters of the company and shareholders - Titagarh Bridges & International, have also invested Euro 5.4 million as a part of the investment agreement and recapitalisation plan agreed by TFA with the Government agency and the Private Equity fund.

The new equity has been issued at face value of Euro 1/- per share translating into an Enterprise Value of the company at Euro 118 million and an Equity valuation of Euro 33 million.