Cimmco to merge with parent co Titagarh Wagons

Engineering company Cimmco Ltd will merge with its parent Titagarh Wagons Ltd (TWL), the company said on Friday. Two more group companies involved in the scheme of arrangement are Titagarh Capital Private Ltd, a wholly-owned subsidiary of TWL, and Titagarh Enterprises Ltd, it said in a release to the exchanges.

The amalgamation will let TWL promoters raise its stake in the two companies from 45.7 per cent to 50.9 per cent. TWL will allow 13 shares of Rs 2 each for every 24 Cimmco shares, the release said.

Titagarh Wagons posted a revenue of Rs 910 crore in 2018-19, while Cimmco's turnover for the same fiscal was Rs 257 crore.