Texmaco Rail to acquire steel casting foundry

Texmaco Rail & Engineering’s board has approved the acquisition of a steel casting foundry, located at Urla Industrial Estate, Raipur, Chhattisgarh from Simplex Castings, as a going concern on a slump sale basis. The said acquisition is likely to result in capacity expansion by more than 50 per cent.

The company’s existing capacity stands at around 30,000 MT, which is running at 60 per cent utilisation. The company will invest around Rs. 87.50 crore for this acquisition which will be sourced from internal accruals and bank loans.

Besides, the NCLT has approved the amalgamation scheme between Texmaco Hitech and Bright Power. The record for this amalgamation is Friday, May 10, 2019.

The other decision that board of directors have approved in their meeting include issuance of equity shares of the company by way of a rights issue to the existing shareholders of the company for an amount not exceeding Rs. 200 crore and issuance of debt, quasi-debt and/or other convertible instruments for an amount not exceeding Rs. 300 crore.

Meanwhile, on Friday, the stock of Texmaco Rail was traded flat and settled for the day at Rs. 69 apiece as against its previous close of Rs. 69.70.