Titagarh Wagons Limited (TWL), one of the leading private sector wagon manufacturers in India, announced its foray in the metro coach and high-speed train manufacturing with the acquisition of the business of Firema Trasporti S.p.A. based in Italy.

The transaction entails transfer of technology, all tangible and intangible assets and some liabilities relating to ongoing orders.

The business has been acquired through a SPV Titagarh Firema Adler S.p.A. registered in Milan, Italy (TFA) in which TWL holds 90 per cent stake. The balance 10 per cent stake is held by Adler Plastics S.p.A, part of a leading Italian group with a revenue of above a billion Euro.

The funding of about Euro 20-25 million for the acquisition, new investment and operations of the company is planned primarily from internal accruals as well as some proposed external borrowings by Titagarh Singapore Pte Limited, the wholly-owned Singapore subsidiary of Titagarh wagons.

Titagarh wagons also successfully concluded issuance of equity shares by way of a QIP. The issue was oversubscribed by 1.9 times of the base book. The company allotted 15089025 equity shares of face value of Rs. 2 each at Rs. 99.41 per share aggregating Rs. 150 crores.

Part of the proceeds will be utilised to upgrade the Indian coach manufacturing facilities in order to absorb the technology from the newly acquired unit, and cater to the booming Indian market for metro coaches and other trains.

The local partner, Adler Plastics will help coordinate and provide necessary local support and relationships, and will also provide modern interiors for the trains.

J.P. Chowdhary, Group Chairman of Titagarh expressed delight on this development and said, "This is a big milestone for our Group and will completely transform the size and outlook for the Group. I am sure that we will make a grand success of this acquisition."

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