In an exchange filing made on Sunday (11 September 2022), the company said that the Government of Italy, through its investment arm – Invitalia has taken a strategic stake in Titagarh Firema Spa (TFA), the subsidiary of Titagarh Wagons.

Government of Italy will subsequently own 30.30% stake in Titagarh Firema, for an investment of euro 10 million.

Their investment has been accompanied by an investment from a private equity fund based out of UAE, Hawk Eye DMCC, who has invested euro 4.5 million and acquired 13.64% equity share capital of the company.

The existing promoters of the company and shareholders (Titagarh Bridges & International) have also invested euro 5.4 million as a part of the investment agreement and recapitalisation plan agreed by TFA with the Government agency and the private equity fund.

The new equity has been issued at face value of euro 1 per share translating into an enterprise value of the company at euro 118 million and an equity valuation of euro 33 million.

This is a strategic transaction and this recapitalisation exercise will lead to overall value creation and resultant appreciation of the valuations of TFA.

The company along with its subsidiary Titagarh Bridges & International (TBIPL) continues to hold shares worth euro 16.40 million representing 49.70% of TFA.

Titagarh Wagons is the largest private sector manufacturer of railway coaches (EMUs, MEMUs) and the largest wagon maker (other than railways).

The company's consolidated net profit declined 93.10% to Rs 1.20 crore despite a 4.21% rise in sales to Rs 528.60 crore in Q1 FY23 over Q1 FY22.