Texmaco to pump Rs.76 Crore in acquisitions

Kolkata: Texmaco Rail and Engineering Ltd (Texmaco), an Adventz group company, will acquire a majority stake of 76 per cent in the Mumbai-based Railway Electrification company Bright Power Projects (India) Private Limited in a bid to turn into a total rail solutions provider for an enterprise value of Rs 100 crore.

The company in a statement said the acquisition would be made at an enterprise valuation of Rs 100 crore, in which case, the company would have to shell out Rs 76 crore for the 76 per cent stake. The acquisition would be funded from internal accruals. The company has recently raised Rs 300 crore through as qualified institutional placement (QIP). The final transaction is expected to be completed over the next two-three months.

The final transaction was expected to be over in two to three months, subject to certain approvals.

“Texmaco expects this acquistion to be strategic and complimentary to the existing operations of Kalindee Rail. Bright Power has a turnover of about Rs 80 crore in 2014-15 with double-digit operating margins and healthy order book of Rs 200 crore as on April 1, 2015. It has recently won two major tenders aggregating to about Rs 100 crore,” Texmaco said in a statement today.

Bright Power has a turnover of about Rs 80 crore in 2014-15 with double digit operating margins and healthy order book of Rs 200 crore.

The Texmaco statement said currently 39.9 per cent of the Indian Railways has been electrified and the Twelfth Five-Year Plan (2012-17) had set a railway electrification target of 6500 km. “The current annual run rate of electrification is 1300-1400 km on the existing railway network,” the company said.

ICICI Securities was the financial adviser and Shardul Amarchand Mangaldas & Co the legal council to Texmaco for this transaction.

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