Texmaco Rail & Engineering Ltd to acquire Jindal Rail Infrastructure Ltd

The Board of Directors of Texmaco Rail & Engineering Limited (the "Company") at its meeting held today i.e. 25th July 2024 has approved the acquisition of all of the rights, title and interest in all of the securities of Jindal Rail Infrastructure Limited ("JRIL") held by the existing security holders of JRIL, by the Company from JRIL's existing security holders, namely, JITF Urban Infrastructure Service Limited ("JUISL") and Siddeshwari Tradex Private Limited ("STPL") (such acquisition, the "Transaction").

In this regard, the Company will execute (a) a securities purchase agreement with JUISL and JRIL for acquisition of all of the rights, title and interest in all of the securities held by JUISL in JRIL, on a fully diluted basis, ("JUISL SPA"), (b) a securities purchase agreement with STPL for acquisition of all of the rights, title and interest in all of the securities held by STPL in JRIL ("STPL SPA"), and (c) any other transaction related documents with JRIL and the existing security holders of JRIL, (collectively, the "Transaction Documents") today. The Transaction is subject to satisfaction of certain conditions precedent in accordance with the Transaction Documents.

The acquisition will (a) aim towards leadership in special purpose private freight rolling stock both domestic and international; (b) open opportunities for new product lines including Other Rolling Stocks; and (c) contribute to the Company's presence in Western India along with unique opportunities for enhanced exports.

The Company is to pay to JUISL an aggregate consideration amount of INR 4,65,00,00,000 (Rupees Four Hundred and Sixty Five Crores) subject to adjustments at closing in accordance with the JUISL SPA.

The Company is to pay to STPL an aggregate consideration amount of INR 1,50,00,00,000 (Rupees One Hundred and Fifty Crores) in accordance with the STPL SPA.

JRIL is involved in manufacturing of rail wagons and designing, engineering, and providing project execution services related to wagons.

Commenting on the Acquisition of JRIL: "The Adventz Group has always been committed to participating in India's development. The JRIL acquisition will exponentially boost our participation in domestic and foreign markets, catalyzing the nation's economic growth" said Mr. Saroj Kumar Poddar, Chairman of Texmaco.

"We are ever focused on forming strategic alliances to boost growth and enhance synergies across the industry, and this low-risk acquisition is in line with our overarching vision" said Mr. Indrajit Mookerjee, Vice Chairman of Texmaco.

"This acquisition puts Texmaco Rail to have significant lead in Freight Rolling stock market within the country and in international Rail Freight Industry map on a shorter term. This also throws open tremendous opportunities to expand more on the whole Railway Rolling Stock and Component Value Chain with foray into newer product lines. We believe Texmaco Rail with its this expansion in western India will be more emphatically contributing towards Government's Plan of Atmanirbhar Bharat and Vikshit Bharat" said Mr. Sudipta Mukherjee, Managing Director of Texmaco.

Shares of JITF Infralogistics Limited was last trading in BSE at Rs. 866.55 as compared to the previous close of Rs. 825.30. The total number of shares traded during the day was 13493 in over 790 trades.

The stock hit an intraday high of Rs. 866.55 and intraday low of 814.65. The net turnover during the day was Rs. 11511256.00.

Shares of Texmaco Rail & Engineering Limited was last trading in BSE at Rs. 276.20 as compared to the previous close of Rs. 261.70. The total number of shares traded during the day was 851800 in over 14954 trades.

The stock hit an intraday high of Rs. 279.40 and intraday low of 260.00. The net turnover during the day was Rs. 231329703.00.

Source : Equity Bulls

Keywords

JITFInfralogistics INE863T01013 StakeSale JindalRailInfrastructure TexmacoRailandEngineering INE621L01012