"Texmaco Rail Shares Jump 10% as Company Secures ₹1,374 Crore Order from Railway Board"

Texmaco Rail & Engineering witnessed a remarkable surge in its shares, reaching a new high of Rs.188.95, representing a 10% rally on the BSE during Friday's intraday trade. The upswing followed an announcement from the company stating that it has secured a substantial order from the Ministry of Railways (Railway Board) to manufacture and supply 3,400 BOXNS wagons, amounting to a staggering Rs.1,374 crore.

As of 09:30 AM, the stock was trading 6% higher at Rs.181.35, outperforming the 0.3% gain in the S&P BSE Sensex. Trading volumes surged 1.5 times the average, with a combined 9.6 million equity shares changing hands on the NSE and BSE.

Texmaco Rail's recent financial moves also contributed to the positive market sentiment. Last month, the company successfully raised Rs 750 crore through a qualified institutional placement (QIP), issuing 58.09 million shares at a price of Rs 129.11 per share. Notable foreign portfolio investors (FPIs), including Society Generale – ODI, Abu Dhabi Investment Authority – Monsoon, and BOFA Securities Europe SA – ODI, were allotted more than 5% of the equity shares offered in the QIP.

In addition to the recent order win, Texmaco Rail has strategically partnered with Hindalco, the world's largest aluminum rolling and recycling company. The collaboration focuses on manufacturing aluminum rail wagons and coaches, along with the necessary components for this ecosystem. The aluminum wagons are particularly suitable for high-speed trains, aligning with the Indian Railways' objective of doubling freight capacity to 3,000 million tonnes by 2027, as stated in Texmaco Rail's FY23 annual report.

Following a successful financial year 2022-23 with a topline of Rs 2,600.25 crore, Texmaco Rail is poised to enhance its production capacity by 25 to 30%. With the government's decision to manufacture Vande Bharat trains in India, the company anticipates substantial growth in its overall business by the end of 2023-24.

Texmaco Rail & Engineering, along with its subsidiaries, is actively involved in the manufacturing, selling, and servicing of rail and rail-related products, producing a diverse range of offerings.

BS