270% Gains In 12 Months: This Multibagger Rail Company Plans Rs 250 Crore QIP To Fuel Expansion; Reports

Texmaco Rail and Engineering Ltd, a key player in the transportation infrastructure sector and a flagship company of the Adventz Group, is gearing up to launch a Qualified Institutional Placement (QIP) with a base issue size of Rs 250 crore, according to CNBC-TV18 sources.

CNBC-TV18 sources revealed that Texmaco intends to dilute 4.21% of its equity through this QIP, with an indicative price set at Rs 155 per share-a 6.4% discount to the closing price. The exclusive Book Running Lead Manager (BRLM) for this initiative is Nuvama Wealth Management Ltd.

In a recent statement, Texmaco had expressed its ambitious goal of delivering 3,400 rail wagon orders in the first quarter of the next financial year (Q1FY25), relying on a robust future order book position. By December 2023, the company had amassed a freight car order book worth Rs 5,700 crore.

Speaking on the company's growth trajectory, Texmaco's spokesperson Mookerjee emphasized the anticipated surge in demand from both the public and private sectors. With Indian Railways expected to issue more orders and tenders, coupled with the private sector's need for increased freight cars to transport essential goods, Texmaco is poised for significant expansion.

Texmaco Rail and Engineering currently operates two manufacturing facilities, with one running at full capacity and the other poised for further utilization. Over the years, the company has substantially ramped up its production capacity, increasing from 250 wagons per month to approximately 800. Texmaco's immediate target is to achieve a production rate of 1,000 wagons per month, a milestone expected to be reached in the coming months.

Despite the challenges posed by the pandemic, Texmaco's shares have been on an upward trajectory. As of 10:45 am on the National Stock Exchange (NSE), Texmaco Rail and Engineering shares were trading at Rs 166.75 apiece, marking a nearly 1% gain. Over the past year, the stock has surged by an impressive 270%, reflecting investor confidence in the company's prospects.

The QIP initiative is seen as a strategic move by Texmaco to bolster its financial resources and capitalize on the burgeoning demand in the transportation infrastructure sector. With a robust order book and ambitious production targets, Texmaco Rail and Engineering is poised to play a pivotal role in India's rapidly evolving railway and freight transportation landscape.