Titagarh Wagons chairman J.P. Chowdhary (left) with managing director Umesh Chowdhary in Calcutta on Saturday. Picture by Kishor Roy Chowdhury

Calcutta, March 15: Calcutta-based Titagarh Wagons Ltd has wooed prominent private equity players in the run-up to its forthcoming initial public offering (IPO).

The last one to join the wagon maker was Blackstone, which picked up a 1.43 per cent stake for $4 million (Rs 16 crore) on February 26.

The issue, which opens on March 24, has been priced at Rs 540-610 per equity share.

The Blackstone deal was preceded by the entry of JP Morgan, which invested Rs 610 per share. It holds a 5 per cent stake in the company.

GE Capital International has made the biggest investment in the company. It picked up a 15.5 per cent stake for about Rs 130 crore in the middle of 2007.

Managing director Umesh Chowdhary defended the pricing of the issue despite volatile secondary market condition.

“Top notch global investors have invested in Titagarh Wagons at a price similar to what is being offered to the public. There is no reason to worry,” he said.

The company also has investments from ChrysCapital, GMO and Emirates Trading Agency.

At the higher end of the price band, Titagarh’s share will have a price earning of 18 considering its earnings in 2007-08.

The company plans to raise Rs 129-145 crore to set up an EMU coach manufacturing facility at the Uttarpara unit, modernise and expand the existing facilities at Titagarh and Uttarpara and acquire a 51 per cent stake in Cimmco Birla.