MUMBAI (Reuters) - Wagonmaker Titagarh Wagons Ltd aims to increase its revenue share from heavy earth moving machinery used in mining and construction, a senior official said on Friday.
Besides heavy earth moving equipment, Titagarh Wagons also plans to make bailey bridges and iron castings, Managing Director Umesh Chowdhary told reporters. Bailey bridges are portable pre-fabricated bridges used by the military.
“We plan to move towards other niche segments,” Managing Director Umesh Chowdhary told reporters.
The company, which gets 80 percent of its revenue from wagon manufacturing, plans to raise up to 1.45 billion rupees from sale of 2.37 million shares at the upper end of price range of 540 rupees to 610 rupees a share.
Kotak Mahindra Capital Co Ltd and JM Financial Consultants are co-managers of the issue, which opens on March 24.
Titagarh Wagons plans to use the funds for setting up an electric multiple unit (EMU) manufacturing facility in West Bengal, expanding its existing facility and also look at strategic buyouts or investments.
The company competes with wagon makers Texmaco Ltd, Jessop and state-run BEML Ltd.
The company, in which General Electric Co.’s Equipment Services and Commercial Finance units have a 15 percent stake, has orders worth 7.53 billion rupees.
Private equity firm Blackstone bought a minority stake in the firm in a pre-IPO placement at 672 rupees a share. JP Morgan, 2i Capital, and ChrysCapital also have stakes in the firm.
Titagarh Wagons has a 49 percent stake in a joint venture with Freight Car America Inc for manufacturing light-bodied wagons.
