Titagarh Wagons to divest 4.49 pct stake in Cimmco for proposed merger

Titagarh Wagons Limited (TWL) will be divesting 4.49 per cent stake in its subsidiary Cimmco Ltd in the open market to pave way for the proposed merger. "TWL will be selling its 4.49 per cent of stake in Cimmco to bring down the holding for compliance for the proposed scheme of amalgamation," a TWL official told PTI.

TWL holds 79.37 per cent and is required to bring it down to at least 75 per cent, the official said. It will sell offer for sale (OFS) of 12,27,415 equity shares of Rs 10 each through exchange route on June 7.

The TWL has already announced a scheme of arrangement in which it will merge engineering company Cimmco Ltd, Titagarh Capital Private Ltd - a wholly-owned subsidiary of TWL, and Titagarh Enterprises Ltd. TWL will allow 13 shares of Rs 2 each for every 24 Cimmco shares, it had said in a release to the exchanges. Titagarh Wagons posted a revenue of Rs 910 crore in 2018-19, while Cimmco's turnover for the same fiscal was Rs 257 crore.