TITAGARH RAIL SYSTEMS LIMITED has informed the Exchange regarding a press release dated July 10, 2025, titled "Titagarh Rail Systems Limited to raise Funds through Preferential Issue of Warrants".
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Titagarh Rail Systems has received board approval (dated 9 July 2025) to raise approximately ₹200 crore by issuing 21,16,402 convertible warrants to members of its promoter group. Each warrant, convertible into one equity share of face value ₹2, carries a floor exercise price of ₹945, with 25% payable on application and the remaining 75% on conversion within 18 months. All warrants will be allotted to Mrs. Rashmi Chowdhary (15,87,301 warrants) and Mr. Prithish Chowdhary (5,29,101 warrants), taking the former's post-conversion stake from 7.52% to 8.56%. Proceeds are earmarked for new plant and machinery, working capital to support new order wins, technology and automation investments, and general corporate purposes. An EGM is scheduled for 8 August 2025 to seek shareholder approval for the issue.
This is a positive confidence signal as promoters are investing their own money into the company, suggesting they believe in the growth story. Existing shareholders may see a small dilution if all warrants are converted, but the fresh capital should fund expansion and strengthen the company's ability to win new rail orders, potentially supporting long-term growth.