Shares of Texmaco Rail & Engineering traded flat in early hours of September 18 after the company's board gave the approval to raise fresh capital.
The board of directors at its meeting on September 15 approved the raising of funds up to Rs 1,000 crore by way of issuance of equity shares through qualified institutions placement (QIP).
It is subject to approval from shareholders of the company and the receipt of such regulatory/statutory approvals as may be required.
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The board also approved the raising of funds by way of issuance of equity shares of the company through preferential issue to promoter(s) / promoter group, for an amount not exceeding Rs 50 crore.
It is subject to approval of the shareholders of the company and the receipt of such regulatory/statutory approvals as may be required, on preferential basis for cash.
In August, the company entered into a strategic alliance with Hindalco Industries for making aluminium rail wagons and coaches.
Hindalco will provide profiles, sheets and plates of its unique aluminium alloys, along with fabrication and welding expertise and Texmaco will bring in technical expertise and be responsible for design, setting up the factory, production line and providing skilled workers.
Texmaco swung back in the black with a net of Rs 12.75 crore in the June quarter as against a loss of Rs 20.54 crore a year back. Revenue of the company stood at Rs 656.82 crore as against Rs 298.70 crore.
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