Mar 22, 2008

IPO News 22 March 2008 - Titagon Wagons Ltd

Titagon Wagons Ltd is coming out with IPO on March 24.

Titagarh Wagon, the private sector railway wagon manufacturer is entering the capital market with its IPO of 23,83,768 shares of Rs10 for cash at a price to be determined through 100% book building proess. The price band for the issue has been between Rs540 and Rs610 per share. The issue opens on March 24, 2008 and closes on March 27, 2008. The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.

The issue consists of net issue of 23,68,768 shares and a reservation of upto 15,000 shares for subscription by eligible employees. At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5% of the QIB portion to mutual funds and the rest will be allocated to the QIB bidders.

The company plans to utilize the proceeds for various purposes like modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an EMU manufacturing facility at Uttarpara unit, , setting up an axle machining and wheelset assembly facility at Uttarpara unit, Brand building exercise, constructing a corporate office and a design cum research and development office, general corporate purposes and strategic and acquisition or investments.

Titagarh Wagons manufactures special purpose wagons, shelters and other engineering equipments. The company also manufactures and markets special purpose wagons to suit the varying needs such as Merry Go Round wagons and special wagons for the Indian Defence establishment. The Company has two manufacturing facilities located at Titagarh and Uttarpara in West Bengal.