Titagarh Rail to Raise Rs 2 billion via Preferential Allotment to Promoters
RAILWAYS & METRO RAIL

Titagarh Rail to Raise Rs 2 billion via Preferential Allotment to Promoters

Titagarh Rail Systems has announced a proposal to raise approximately Rs 2 billion through a preferential issue of 21,16,402 convertible warrants to members of its Promoter Group. The board of directors approved the move at its meeting held on July 9, 2025, subject to shareholder and regulatory approvals. 

The warrants, priced at Rs 945 each, will be allotted to Mrs Rashmi Chowdhary and Mr Prithish Chowdhary in line with Chapter V of SEBI’s ICDR Regulations. Each warrant is convertible into one equity share of ₹2 face value within 18 months from the date of allotment. 
  
As per the structure, applicants are required to pay 25 per cent of the total consideration at the time of application, with the remaining 75 per cent payable upon conversion. The aggregate size of the issue is valued at ₹199.99 crore. 
 
Post-conversion, Mrs Rashmi Chowdhary’s shareholding will increase from 7.52 per cent to 8.56 per cent, while Mr Prithish Chowdhary will hold 0.39 per cent stake in the company. 

The proceeds from the issue will be deployed towards investment in advanced plant and machinery, strengthening working capital to improve order book prospects, technological upgradation for future-ready rail systems, and other general corporate purposes. 

To facilitate the approval process, the company has scheduled an Extraordinary General Meeting (EGM) of shareholders on August 8, 2025, via video conferencing. 

Commenting on the development, Mr Umesh Chowdhary, Vice Chairman and Managing Director of Titagarh Rail Systems, said, “The board’s decision reaffirms the promoter group’s confidence in the company’s long-term growth trajectory. This capital infusion will accelerate capacity enhancement, support working capital requirements, and fund our strategic initiatives in line with growing demand for freight and passenger rail solutions.” 



 

 

Titagarh Rail Systems has announced a proposal to raise approximately Rs 2 billion through a preferential issue of 21,16,402 convertible warrants to members of its Promoter Group. The board of directors approved the move at its meeting held on July 9, 2025, subject to shareholder and regulatory approvals. The warrants, priced at Rs 945 each, will be allotted to Mrs Rashmi Chowdhary and Mr Prithish Chowdhary in line with Chapter V of SEBI’s ICDR Regulations. Each warrant is convertible into one equity share of ₹2 face value within 18 months from the date of allotment.   As per the structure, applicants are required to pay 25 per cent of the total consideration at the time of application, with the remaining 75 per cent payable upon conversion. The aggregate size of the issue is valued at ₹199.99 crore.  Post-conversion, Mrs Rashmi Chowdhary’s shareholding will increase from 7.52 per cent to 8.56 per cent, while Mr Prithish Chowdhary will hold 0.39 per cent stake in the company. The proceeds from the issue will be deployed towards investment in advanced plant and machinery, strengthening working capital to improve order book prospects, technological upgradation for future-ready rail systems, and other general corporate purposes. To facilitate the approval process, the company has scheduled an Extraordinary General Meeting (EGM) of shareholders on August 8, 2025, via video conferencing. Commenting on the development, Mr Umesh Chowdhary, Vice Chairman and Managing Director of Titagarh Rail Systems, said, “The board’s decision reaffirms the promoter group’s confidence in the company’s long-term growth trajectory. This capital infusion will accelerate capacity enhancement, support working capital requirements, and fund our strategic initiatives in line with growing demand for freight and passenger rail solutions.”   

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement