Shares of Texmaco Rail could potentially experience an uptick on February 28, following the approval by the company’s board to raise up to Rs 150 crore through a preferential issue of convertible warrants to its promoters and promoter groups.
Texmaco Rail’s board has empowered its Capital Issue Committee to finalize the structure, terms, and conditions of the issuance, along with other associated matters, as stated in a filing by the company.
Closing slightly lower by half a percent at Rs 196.25 on February 27, Texmaco Rail shares have witnessed significant growth over the past year, delivering remarkable returns of 344%, thereby quadrupling investors’ capital. Before this proposed fund-raise, the Kolkata-based engineering and infrastructure firm, Texmaco Rail & Engineering Ltd, successfully raised Rs 750 crore through a Qualified Institutional Placement (QIP), inclusive of a greenshoe option of Rs 200 crore.
The QIP garnered a subscription of over two times and garnered strong interest from prominent foreign investors and leading domestic institutional investors and funds, as per a company statement.
In the fiscal third quarter (Q3FY24), Texmaco Rail reported a 43.46% year-on-year increase in net sales to Rs 896.44 crore. The quarterly net profit surged by 160% YoY to Rs 29.37 crore, while EBITDA rose by 52% to Rs 95.03 crore. Texmaco Rail’s EPS rose to Rs. 0.89.
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