Titagarh Rail Systems Share surge on investing Rs 1,000 crore in consortium with BHEL!

On June 14, 2023, Titagarh Rail Systems Ltd said that it would invest Rs 1,000 crore in its consortium with BHEL Ltd called Titagarh Rail Systems-Bharat Heavy Electricals Ltd that has won the award to supply 80 Vande Bharat trains to Indian Railways and also maintain them over a period of 35 years.  

“Of the total Rs 1,000 crore, they have raised Rs 288.8 crore through preferential allotment of shares to Small-cap World Fund Inc.” “The rest of the funds will be raised through internal accruals and debt if necessary,” says Umesh Chowdhary, vice chairman and MD of Titagarh Rail Systems. 

Chowdhary added that the company will start supplying these wagons to Indian Railways starting June 2025 and will supply all 80 trains by 2029. He noted that the deal is worth Rs 24,000 crores, with Rs 10,000 crores going towards delivering the trains, which would be the first sleeper Vande Bharat trains, and the rest going towards maintenance over a 35-year period. 

Titagarh Rail Systems Ltd is engaged in the manufacturing of railway wagons, bailey bridges, heavy earth moving and mining equipment, steel and SG iron castings of moderate to complex configuration. The company also manufactures products for the Indian defence establishment, such as special wagons, shelters and other engineering equipment. 

Titagarh Rail Systems Ltd is currently trading at Rs 418.35, up by 1.95 points or 0.47% from its previous closing of Rs 416.40 on the BSE. The scrip opened at Rs 418.50 and has touched a high and low of Rs 421.60 and Rs 416.45 respectively. So far 258 shares were traded on the counter. The BSE group ‘B’ stock of face value of Rs 2 has touched a 52-week high of Rs 430 and a 52-week low of Rs 93.35. The current market cap of the company is Rs 4,986.71 crore.