TITAGARH RAIL SYSTEMS LIMITED has informed the Exchange about Intimation Regarding Sale/Transfer/Disposal Of A Business Unit Of Overseas Associate Company
TITAGARH · price
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Awaiting price reaction for this filing.
Titagarh Rail Systems' overseas associate, Titagarh Firema SpA (Italy), has completed the transfer of its business unit to Fabbrica Italiana Treni S.p.A (owned by Italian State Railways/Ferrovie dello Stato) for a net consideration of EUR 66,095,000 (approximately ₹600+ crores). The proceeds were used entirely to pay off secured and unsecured creditors of Firema under the CNC (Italian insolvency) process before the Court of Naples. Firema, acquired by TRSL in 2015, had been incurring heavy losses despite multiple cash infusions from TRSL, and this disposal will stop further cash outflows from TRSL to support the associate. The company clarified that this transfer will have no impact on TRSL's own operations, as it has already built independent capability in passenger rolling stock (Metro Coaches, Vande Bharat trains, propulsion systems), with an order book of INR 10,791 crores for this segment.
Positive for shareholders — this disposal eliminates a loss-making drag and stops TRSL from having to keep funding Firema's losses, freeing up capital for the company's strong core order book of nearly ₹10,791 crores. The transaction also provides closure to a long-pending overseas overhang, though direct cash inflow to TRSL is minimal since proceeds went to Firema's creditors.