Titagarh Wagons to venture into metro coach, high-speed trains

Kolkata-based wagon manufacturer Titagarh Wagons Ltd. (TWL) on Thursday said it had completed the acquisition of Italy-based metro coach and high-speed train manufacturer Firema Transporti S.p.A., thereby marking its entry into these segments.

The company said it will use the technology from the acquired firm to fuel manufacturing plans in India in metro coaches and high-speed trains.

"The acquisition has been carried out through an SPV (special purpose vehicle) - Titagard Firema Adler S.p.A. registered in Milan. The Singapore division of TWL holds 90 percent stake in the SPV while Italy-based Adler Plastics hold the remaining 10 percent," TWL vice chairman and managing director Umesh Chowdhary told mediapersons here.

He said the TWL Board approved an infusion of Euro 25 million into the SPV to fuel its growth in the European, African and Gulf region markets.

"Euro 10 million investment has already been made in the process of the acquisition", he said.

The company has also completed issuance of equity shares by way of qualified institutional placement. "It was oversubscribed 1.9 times," Chowdhary said.

It had allotted 15,089,025 equity shares with a face value of Rs.2 each at Rs.99.41 per share which aggregated to Rs.150 crore.

"Part of the proceeds will be used to upgrade the Indian coach manufacturing facilities in order to absorb the technology from newly acquired four units of Firema Transporti S.p.A to cater to the Indian market for metro coaches and other trains," he said.