Titagarh Wagons Ltd said on Monday that its board has approved the merger of Titagarh Steels Ltd with itself. Shareholders of Titagarh Steels Ltd would get one equity share of Titagarh Wagons for every 36 shares held by them, the company said in a statement to the National Stock Exchange.
Titagarh Wagons makes railway wagons as well as heavy earth moving and mining equipment, while Titagarh Steels makes alloy steel castings used for railway wagons and other heavy engineering products, according to company web sites.
The board also provided for the merger of Titagarh Biotech Pvt Ltd, a wholly-owned subsidiary, with itself and all shares held by the company in the share capital of TBPL would stand cancelled. No allotment of any new shares would be made in lieu of them, it said.
Titagarh Wagons has seen around 3.78 per cent drop in FII holding in its equity in the fourth quarter ended 31 March, as compared to the previous quarter. However, the holdings of five overseas investors - GE Capital International, 2i Capital PCC, Goya, and Strategic Ventures Fund of Mauritius remain unchanged.