Texmaco Rail & Engineering Gears Up for Growth with QIP of ₹250 Crore

Texmaco Rail & Engineering Ltd (Texmaco), a leading player in India’s railway equipment manufacturing sector, has successfully completed a Qualified Institutional Placement (QIP) of ₹250 crore. For this, the company approved the issue and allotment of 1,61,29,032 Equity Shares of the face value of ₹1 per equity share to eligible, qualified institutional buyers at the issue price of ₹155 per equity share (including a premium of ₹154 per Equity Share) which includes a discount of ₹7.88 per equity share. The issue was opened on March 21, 2024 and closed on March 27, 2024.

This significant capital raise is likely to fuel Texmaco’s growth trajectory and position them to capitalise on the burgeoning Indian Railways market.

Following is the list of allottees who have been allotted more than 5% of the equity shares offered in the qualified institutional placement:

Understanding QIP and its Significance

A QIP is a method for listed companies to raise capital by issuing new shares to institutional investors like insurance companies, mutual funds, and foreign institutional investors.

Growth Prospects for Texmaco

The Indian Railways sector is poised for significant growth in the coming years. The government’s focus on infrastructure development and ambitious railway modernisation plans present a lucrative opportunity for Texmaco. Here’s what strengthens their position:

• Established Player: Texmaco boasts a long and successful track record in the Indian railway equipment manufacturing sector.
• Diversified Product Portfolio: They offer a wide range of products, including locomotives, coaches, wagons, and track-linking equipment.
• Strong Relationships: Texmaco has established strong relationships with Indian Railways and other key industry stakeholders.

About Texmaco Rail & Engineering Ltd

Texmaco Rail & Engineering Ltd is an engineering infrastructure co. & part of the Adventz Group. It is engaged in the manufacturing of rolling stock, hydro-mechanical equipment, steel castings & construction of Rail EPC, bridges, and other steel structures. On March 28, 2024, the share price of the company opened at ₹170.00 and reached the day high of ₹170.00 at 11:00 AM.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.