Texmaco Rail gains after Board approves proposal to raise Rs 150 crore

Shares of Texmaco Rail saw some gains on February 28, a day after the company’s board approved plans to raise up to Rs 150 crore through a preferential issue of convertible warrants to its promoters and promoter groups.

The board of Texmaco Rail has authorised its Capital Issue Committee to finalise the structure, terms, and conditions of the issuance, as well as other related matters, the company said in a filing.

The Texmaco Rail shares closed half a percent lower at Rs 196.25 on February 27. In the last one year, the multi-bagger stock has delivered bumper returns of 344 percent, more than quadrupling investors’ money.

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Before this fund-raise, the Kolkata-based engineering and infrastructure company Texmaco Rail & Engineering Ltd raised Rs 750 crore through a Qualified Institutional Placement (QIP), which included a greenshoe option of Rs 200 crore.

The QIP was oversubscribed by more than two times and witnessed a very strong response from established high-profile foreign investors and top domestic institutional investors and funds, a company statement said.

For the fiscal third quarter (Q3FY24), Texmaco Rail reported net sales at Rs 896.44 crore, up 43.46 percent on-year. Its quarterly net profit soared 160 percent YoY to Rs 29.37 crore, and EBITDA jumped 52 percent to Rs 95.03 crore. Texmaco Rail EPS increased to Rs. 0.89.

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As of December 2023, the company’s freight car order book stood at Rs 5,700 crore. The company expects more orders and tenders to come from the Indian Railways.

Earlier this month, Texmaco Rail and Engineering said it aims to deliver 3,400 rail wagon orders in the first quarter of the next financial year (Q1FY25) riding on a healthy future order book position.

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