Friday, March 14, 2008

Blackstone Buys Pre-IPO stake in Titagarh Wagons

PE fund Blackstone has picked up a minority interest in Titagarh Wagons for Rs 672 a share in a pre-IPO placement. Blackstone bought 2.35 lakh shares for around Rs 16 crore from the Strategic Ventures Fund (Mauritius). The Mauritius-based company bought equity in Titagarh in July 2005 for Rs 976 a share. But its acquisition cost came down, following an 1:8 bonus issue.

Blackstone is the fifth major investor to put money in Titagarh Wagons. The other investors include GE Capital Infrastructure (15%), JP Morgan (5%), 2i Capital (6%) and ChrysCapital (6.5%). The Chowdharys, the promoter group, holds a 57% stake.

Kolkata-based Titagarh Wagons will sell 23.8 lakh shares in the primary market through an entirely book-built issue. The company will sell 20.68 lakh fresh shares while two investors will offer 3.15 lakh shares through the issue.

Titagarh Wagons is a leading railway freight wagon manufacturer. It makes railway wagons, balley bridges, heavy earth moving and mining equipment, steel and SG iron castings. It is one of the approved vendors for defence manufacturing as an ‘industry partner’ to the DRDO.

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