Texamaco Rail‘s share price surged on Friday morning, shooting up over 5% to hit an intraday high of ₹292 — close to its 52-week high of ₹296.49.

What Happened: The surge today comes as the railway infra company said on Thursday it would acquire Jindal Rail Infrastructure. This deal is expected to strengthen Texmaco's presence in the private freight rolling stock sector.

The deal worth around ₹615 crore is expected to be completed within 57 days or an extended period agreed upon by the parties involved.

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Jindal Rail specialises in manufacturing commodity-specific special purpose wagons, primarily for the private sector in India. Since beginning operations in 2012, It has delivered over 8,600 wagons to customers both in India and internationally, the company said in a press release.

Jindal Rail’s current order book includes over 2,000 wagons, which are expected to be delivered over the next 12 to 14 months. For the year ended March, the company generated total revenues of ₹750.11 crore, an EBITDA of ₹84.88 crore, and a profit before tax of ₹57.37 crore.

Price Action: Texmaco Rail’s share price moderated after strong early gains to trade 1.77% higher at ₹281 shortly after market open on Friday.

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