Texmaco Rail To Acquire Jindal Rail Infra For ₹615 Cr

Texmaco Rail & Engineering has announced its acquisition of Jindal Rail Infrastructure Limited. The deal is expected to strengthen Texmaco’s presence in the private freight rolling stock sector.

What Happened: The board of directors of Texmaco Rail & Engineering approved the acquisition of Jindal Rail Infrastructure (JRIL) from its existing owners, JITF Urban Infrastructure Service (JUISL) and Siddeshwari Tradex Private (STPL).

JRIL is involved in the manufacturing of rail wagons and designing, engineering, and providing project execution services related to wagons. The company’s turnover for the year ended March 2024 stood at ₹748 crore.

The acquisition, to be executed through a securities purchase agreement with JUISL and JRIL, and a similar agreement with STPL, is subject to certain conditions precedent by the transaction documents. The deal, costing ₹615 crores, is expected to be completed within 57 days or an extended period agreed upon by the parties involved.

See Also: RITES Secures Order Worth Over ₹320 Cr To Build Medical Facility In Maharashtra

This acquisition is expected to enhance Texmaco’s presence in special-purpose private freight rolling stock both domestically and internationally. It will also open opportunities for new product lines and enhance the company’s presence in Western India, along with unique opportunities for increased exports, the company said in an exchange filing.

This acquisition comes at a time when the Indian government is focusing on rolling stock in its latest budget, which is expected to benefit players like Texmaco. As per a note by Nuvama Institutional Equities, this focus on rolling stock is expected to provide a holistic experience to travellers, evident in the significant increase in capex towards passenger amenities.

Read Next: Adani Green Shares Rocket 8% As Profit Jumps 38% To ₹446 Cr