Texmaco Rail acquires 55% stake in Bright Power Projects
05 January 2016
Shares of Poddar Group railway wagon manufacturer Texmaco Rail & Engineering gained as much as 4.87 per cent this morning after the company announced the acquisition of a 55 per cent stake in Mumbai-basxed EPC services provider Bright Power Projects.
In September, Texmaco Rail & Engineering's board had approved the acquisition of 76-per cent stake in Bright Power Projects for Rs100 crore. Texmaco Rail & Engineering had then said that the acquisition will be funded out of the internal accruals of the company.
Bright Power Projects is an engineering procurement and construction (EPC) company that provides overhead electrification (OHE) solutions to the Indian Railways. Bright Power had a turnover of Rs78 Crores and a net profit of Rs6 crore for the financial year 2014 - 15. Bright Power has a current order book of about Rs600 crore.
This acquisition will help Texmaco Rail & Engineering to strengthen its position as a total rail solutions provider company, said the railway freight, car and equipment manufacturing company in a Bombay Stock Exchange filing.