Titagarh Wagons surges on cancelation of demerger plan

The stock has rallied over 24% in past four trading sessions from Rs 79.95 as compared to 2.3% rise in benchmark Sensex.

Titagarh Wagons is locked in upper circuit of 10% at Rs 99.40, in otherwise weak market, on reports that the company has scrap plans to demerge its coach manufacturing business into a new company, following sluggish order flow for wagons from Railways.

Wagon and railway coach-maker Titagarh Wagons has decided to scrap plans to restructure business which included separating the coach division, the PTI reports suggests quoting Umesh Choudhary, managing director of the company.

In November, the board of Titagarh Wagons approved demerger of rail coaches division into an existing subsidiary of Titagarh Wagons. The subsidiary was to allot 12 equity shares to the equity shareholders of Titagarh Wagons for every 100 shares held by them.

The stock opened at Rs 93.15 and hit a low of Rs 91 on BSE. A combined 157,802 shares change hands on the counter so far and there are pending buy orders for 34,297 shares on BSE and NSE at 1017 hours. Meanwhile, the stock has rallied over 24% in past four trading sessions from Rs 79.95 on August 21 as compared to 2.3% rise in benchmark Sensex.