Titagarh Rail Systems plans to raise ₹200 crore through the preferential issue of warrants to members of the promoter group.
The city headquartered firm will issue 21,16,402 warrants, each convertible into one equity share of face value c2, at a floor price of ₹945 per warrant. The company’s stocks were trading at ₹929.60 at the Bombay Stock Exchange on Friday.
Post issue, the shareholding of Rashmi Chowdhary and Prithish Chowdhary will increase to 8.56 per cent and 0.39 per cent from 7 per cent and 0 per cent respectively.
The company stated that the proceeds from the issue will be deployed towards investments in plant and machinery, technology, and automation, as well as supporting working capital to enhance the chances of new order wins.
The company has scheduled an extraordinary general meeting (EGM) of shareholders on August 8, 2025, to seek approval for the proposed preferential issue of warrants.
“The board approval dated 9th July 2025 underlines our commitment to efficient capital allocation and reinforces promoter confidence in Titagarh Rail’s growth trajectory. The fresh capital will accelerate capacity expansion, bolster working capital, and support our strategic initiatives to capture the rising demand in freight and passenger rolling stock,” said Umesh Chowdhary, vice chairman and managing director, Titagarh Rail Systems Limited said.
Last month, Prithish Chowdhary, deputy MD, Titagarh Rail Systems Limited, had told The Telegraph that the upcoming years are going to be transformational for the passenger rails business, with the company planning to expand capacity from 300 cars per year to around 850 cars per year by 2027-28.
As of March 31, 2025, the order book of the company was ₹11,200 crore of which 62 per cent is passenger rolling stock and 38 per cent is freight rolling stock. The joint venture’s share of the order book was ₹13,326 crore. This includes wheelsets with Ramkrishna Forgings and Vande Bharat coaches with BHEL.