Rs 24,526 Crore Order Book: Metro rail engineering company’s Board Approves Rs 199.99 Crore Fundraising via Preferential Issue of Over 21 Lakh Warrants to Promoters; EGM Scheduled for August 8

On July 9, Titagarh Rail Systems Limited's Board of Directors has given its approval for a substantial fund-raising initiative through the issuance of up to 2,116,402 warrants. Each of these warrants is convertible into one equity share, with each share having a face value of Rs 2. The warrants are priced at Rs 945 per warrant, collectively aiming to raise approximately Rs 199.99 crore. This preferential issue is specifically allocated to the Promoter Category, which includes Mrs. Rashmi Chowdhary and Mr. Prithish Chowdhary. 

In conjunction with the fundraising plan, the Board also resolved to convene an Extraordinary General Meeting (EGM) for the company's shareholders. This EGM is scheduled for Friday, August 8, 2025, and will be conducted virtually through video conferencing or other audio-visual means. The primary agenda for this meeting is to secure the requisite approvals from the members for the aforementioned fundraising proposal. Further details regarding the warrants specify that each warrant is convertible into one equity share of Rs 2 face value. The rights associated with these warrants can be exercised in one or multiple tranches within a period of 18 months from the date of their allotment. A crucial condition states that if a warrant holder fails to exercise the warrant within this18-month timeframe, the unexercised warrants will lapse, and 25 per cent of the consideration paid will be forfeited by the company. An initial payment equivalent to 25 per cent of the warrant's consideration is required at the time of application, with the remaining 75 per cent payable upon the conversion of the warrants into equity shares.

About Titagarh Rail Systems Limited

Titagarh Rail Systems Limited, originally incorporated as Titagarh Wagons Limited in July 1997 and renamed in May 2023, is a prominent Indian rolling stock manufacturer. The company is primarily engaged in the manufacturing and selling of a diverse range of products including freight wagons, passenger coaches, metro trains, heavy earthmoving and mining equipment, train electricals, steel castings, specialized equipment and bridges, and ships. Its operations are broadly structured across five business lines: Wagon Manufacture, Heavy Earth Moving & Mining Equipment, Foundry Division, Rail Coach Division, and Special Projects. Titagarh is also notably the only private company registered with the Ministry of Defence, Government of India, for manufacturing Bailey bridges and related accessories. The company has expanded its global footprint through factories in India and Italy, catering to both domestic and international markets, and has been involved in significant projects such as the manufacturing and maintenance of Vande Bharat trainsets and metro rail cars for various Indian cities.

According to the Quarterly Results, the net sales decreased by 4.5 per cent to Rs 1,005.57 crore and net profit decreased by 18.4 per cent to Rs 64.45 crore in Q4FY25 compared to Q4FY24. In FY25, the company reported net sales of Rs 3,867.75 crore and net profit of Rs 276.39 crore.

The order book stands at Rs 24,526 crore as of March 31, 2025. Where Rs 11,200 crore order book stands for the company and Rs 13,326 crore order book share from the joint venture. The stock gave multibagger returns of 800 per cent in just 3 years and a whopping 2,390 per cent returns in 5 years.

Disclaimer: This article is for informational purposes only and is not intended as investment advice.