Bengaluru, July 11, 2025: Titagarh Rail Systems Limited has announced plans to raise ~₹200 crore through a preferential allotment of 21,16,402 convertible warrants to members of its Promoter Group. The Board of Directors approved the proposal at its meeting held on 9 July 2025, subject to requisite approvals.
Fund raising details:
Titagarh will issue 21,16,402 warrants, each convertible into one equity share of face value ₹2, at a floor price of ₹945 per warrant. The entire issue, aggregating ~₹200 crore, is being made to members of Promoter Group – Mrs. Rashmi Chowdhary and Mr. Prithish Chowdhary on a preferential basis in accordance with Chapter V of the SEBI ICDR Regulations.
Key terms:
· Issue size: 21,16,402 warrants amounting to ₹199,99,99,890.
· Warrant exercise price: ₹945 per warrant
· Deposit amount: 25% on application; balance 75% on conversion
· Conversion period: Within 18 months from allotment
Post‐Issue Shareholding Impact
| Allottees | Pre‐Issue Shares | Pre‐Issue
% |
Warrants Allotted | Post‐Issue Shares | Post‐Issue
%* |
| Mrs. Rashmi Chowdhary |
1,01,22,630 |
7.52% |
15,87,301 |
1,17,09,931 |
8.56% |
| Mr. Prithish Chowdhary |
0 |
0.00% |
5,29,101 |
5,29,101 |
0.39% |
*Post‐conversion shareholding percentage
Purpose of Funds
Proceeds from the issue will be deployed for various purposes including the following:
· Planned investment in state-of-the art plant and machinery
· Support working capital to enhance chances of new order wins
· Invest in technology and automation for future‐ready rail solutions
· Other permissible general corporate and administrative purposes
Extraordinary General Meeting
An Extraordinary General Meeting (EGM) of shareholders is scheduled on 8 August 2025 via video conferencing to seek approval for the proposed preferential issue of warrants.
Management Comment
Commenting on this development, Mr. Umesh Chowdhary, Vice Chairman and Managing Director, Titagarh Rail Systems Limited said:
“The Board approval dated 9th July 2025 underlines our commitment to efficient capital allocation and reinforces promoter confidence in Titagarh Rail’s growth trajectory. The fresh capital will accelerate capacity expansion, bolster working capital, and support our strategic initiatives to capture the rising demand in freight and passenger rolling stock.”
