Overview
Titagarh Rail Systems Limited has raised ₹199.99 crore through the issue of 21,11,932 convertible warrants to its promoters. Each warrant is priced at ₹947, convertible into equity shares at a 1:1 ratio within 18 months of allotment. Promoters have paid 25% upfront (₹49.99 crore), with the balance 75% payable upon conversion.
Key Details of the Warrant Issue
| Particulars | Details |
| Total Warrants Issued | 21,11,932 |
| Issue Price per Warrant | ₹947.00 |
| Total Amount Raised | ₹199.99 crore |
| Conversion Ratio | 1:1 (One warrant = One equity share) |
| Face Value of Resultant Shares | ₹2.00 per share |
| Conversion Timeline | Within 18 months from allotment date |
Allotment Breakdown
| Allottee | Category | Number of Warrants | Amount (₹) |
| Mrs. Rashmi Chowdhary | Promoter Group | 15,83,951 | 150,00,01,597 |
| Mr. Prithish Chowdhary | Promoter Group | 5,27,981 | 49,99,98,007 |
Terms and Conditions
- Initial Payment: Promoters have paid 25% of the issue price upon allotment, amounting to ₹49.99 crore.
- Conversion Option: Warrants are convertible into equity shares within 18 months by paying the remaining 75%.
- Lock-in Period: The allotted warrants are subject to SEBI ICDR Regulations on lock-in.
- Listing: Warrants will not be listed; however, the equity shares arising on conversion will be listed on stock exchanges.
Purpose and Impact
The warrant issue is designed to strengthen Titagarh Rail Systems’ capital structure and reinforce promoter commitment.
- Capital Infusion: Provides immediate liquidity of ₹49.99 crore, with the potential for an additional ₹150 crore upon full conversion.
- Promoter Confidence: Reflects the promoters’ continued trust in the company’s growth trajectory.
- Financial Flexibility: The 18-month window allows staggered capital inflow as required.
Summary
Titagarh Rail Systems has raised ₹199.99 crore through the issue of 21.1 lakh convertible warrants to promoters at ₹947 per warrant. With ₹49.99 crore received upfront and the remainder due upon conversion, the move enhances the company’s capital base and demonstrates strong promoter confidence in its long-term prospects.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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