Titagarh Rail To Issue Warrants of Rs 199.99 Crore to Promoters
By Ankur Chandra | Published at: Jul 10, 2025 11:21 AM IST
Kolkata, July 10, 2025 – Titagarh Rail Systems Ltd (NSE: TITAGARH, BSE: 532966) has announced the approval of a preferential issue of up to 21,16,402 warrants convertible into equity shares, aggregating to ₹199.99 crore, to promoter group members Mrs. Rashmi Chowdhary and Mr. Prithish Chowdhary. The board approved the capital infusion at its meeting held on July 9, 2025, under Regulation 30 of SEBI LODR Regulations.
Preferential Issue Details
The issue price has been fixed at ₹945 per warrant, with each warrant convertible into one fully paid-up equity share of face value ₹2. The transaction is in accordance with Chapter V of the SEBI (ICDR) Regulations, 2018.
Capital Structure Impact (Assuming Full Conversion)
As part of the proposed capital restructuring, Rashmi Chowdhary has been allotted 15,87,301 convertible warrants, which, upon full conversion, will increase her shareholding from 1,01,22,630 shares (7.52%) to 1,17,09,931 shares, raising her stake to 8.56% in the company.
Prithish Chowdhary, who currently holds no shares, has been allotted 5,29,101 warrants. Upon full conversion, his holding will rise to 5,29,101 shares, accounting for 0.39% of the post-issue shareholding.
| Allottee | Pre-Issue Holding | % | Warrants Allotted | Post-Issue Holding | % |
|---|---|---|---|---|---|
| Rashmi Chowdhary | 1,01,22,630 shares | 7.52% | 15,87,301 | 1,17,09,931 shares | 8.56% |
| Prithish Chowdhary | 0 shares | 0.00% | 5,29,101 | 5,29,101 shares | 0.39% |
Warrant Issue Summary
| Instrument | Face Value | Issue Price | Total Proceeds | Tenure | Conversion Ratio |
|---|---|---|---|---|---|
| Convertible Warrants | ₹2 | ₹945 | ₹199.99 crore | 18 months from allotment | 1 Warrant = 1 Equity Share |
- 25% of the issue amount is payable on application, and the remaining 75% at the time of conversion.
- Warrants not exercised within 18 months will lapse, and the initial 25% will be forfeited.
Regulatory & Shareholder Approvals
The issuance is subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM) scheduled for August 8, 2025, via video conferencing. It will also require applicable statutory and regulatory consents. The relevant date for pricing under SEBI ICDR norms is July 9, 2025.
Titagarh Rail Systems Stock Performance
As of July 10, 2025, Titagarh Rail Systems shares are trading at ₹953.60 at 10:40 a.m. IST, representing a 1.26% gain from the previous close. Titagarh Rail Systems shares have declined 44% over the last year, down 13% year-to-date, and increased 1.02% in the previous month.
About Titagarh Rail Systems
Titagarh Rail Systems Ltd, headquartered in Kolkata, is listed on NSE and BSE. It is a prominent manufacturer of passenger and freight rail systems, metro coaches, propulsion systems, and defence equipment in India and abroad.
REF: https://nsearchives.nseindia.com/corporate/TWL_09072025234126_OutcomeofBM09072025.pdf
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