TITAGARH (Metro Rail News): Titagarh Wagons Limited (TWL) informed all stakeholders that, in a significant milestone transaction, the Italian government, through its investment arm- Invitalia, had purchased a strategic position in Titagarh Firema Spa (TFA) which is a subsidiary of Titagarh Wagons Limited.
The Italian government will then hold a 30.30 percent ownership stake in Titagarh Firema in exchange for a 10 million euro investment.
Their investment was then followed by one from the UAE-based private equity fund Hawk Eye DMCC. It spent 4.5 million euros and acquired 13.64% of the company’s equity share capital.
The company’s current founders and owners (Titagarh Bridges & International Pvt Ltd.) have also contributed 5.4 million euros as part of the investment agreement and recapitalization plan signed by TFA with the Government agency and the Private Equity fund.
The newly issued equity had a face value of 1 euro per share, giving the business enterprise value of 118 million euros and an equity valuation of 33 million euros.
The recapitalization process will increase TFA values and create overall value in this strategic transaction. The Company along with its subsidiary Titagarh Bridges & International Private Limited (TBIPL), still owns shares of 16.40 million euros or 49.70 percent of TFA.
Titagarh Wagons was trading at Rs162.85 up by 4.06% from its previous BSE closing price of Rs156.50.