Titagarh Wagons Limited IPO
Incorporated in 1997, Titagarh Wagons Limited is one of the leading private sector wagon manufacturers in India. It is in the business of manufacturing railway wagons, Bailey bridges, Heavy Earth Moving and Mining equipment, steel and SG iron castings of moderate to complex configuration etc.They also manufacture other products for the Indian defence establishment, such as special purpose wagons, shelters and other engineering equipments. They had approximately 16.9% market share in the wagon manufacturing segment in Fiscal 2006, which has further increased to approximately 22.1% in Fiscal 2007.
Titagarh Wagons Limited are the only private sector company registered with the Ministry of Defence, Government of India to manufacture Bailey bridges and other related accessories in India. Titagarh Wagons Limited aspires to be a leader as a manufacturer of heavy engineering equipment and a world-class service provider for the infrastructure sector. They operate two manufacturing facilities located at Titagarh and Uttarpara, in West Bengal.
Objects of the Issue:
1. The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: Set up an EMU manufacturing facility at our Uttarpara unit;
2. Modernise and expand our existing facilities at our Titagarh and Uttarpara units;
3. Set up an axle machining and wheelset assembly facility at our Uttarpara unit;
4. Construct a corporate office and a design cum research and development office;
5. Strategic acquisition or investments;
6. Brand building exercise;
7. General corporate purposes.
Titagarh Wagons Limited IPO Information»» Public Issue Open: March 24, 2008 to March 27, 2008»» Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)»» Public Issue Size: 4,063,158 Equity Shares of Rs. 10/-»» Face Value: Rs. 10/-»» Public Issue Price: Rs 540/- to Rs 610/-»» Maximum Subscription Amount for Retail Investor: Rs 100,000/-»» Listing: BSE, NSE»» Lead Manager: Kotak Mahindra Capital Company Ltd
Profile
Titagarh Wagons Limited is one of the leading private sector wagon manufacturers in India. We are young company incorporated in 1997-98 which is primarily engaged in the business of manufacturing Railway Wagons, Bailey Bridges, Heavy Earth Moving and Mining Equipment, Steel and SG iron castings of moderate to complex configuration etc.As an “Industry Partner” to the Defence Research and Development Establishment, Ministry of Defence (“DRDO”), we also manufacture other products for the Indian defence establishment, such as special wagons, shelters and other engineering equipments.We believe we are the only private sector company registered with the Ministry of Defence, Government of India to manufacture Bailey bridges and other related accessories in India.
Vision and Mission
Titagarh Wagons Limited aspires to be a leader as a manufacturer of heavy engineering equipment and a world-class service provider for the infrastructure sector, to be known as a dependable and preferred partner for growth in line with a national perspective plan.Titagarh Wagons is also committed to create maximum value for all its stakeholders.
Milestones
1997 - Year of Incorporation : Development of the Proto Type of BOXN Wagon
1998 - 1st Order from the Indian Railways [For BOXN & BCNA Type Wagons2000 - ISO:9002 Certification from Lloyds UK
2000 - Addition of new type of wagon (BOBYN) in the order book
2001 - Bailey Bridge Division : Only Pvt. Sector Unit Registered with the Ministry of Defence,Government of India.
2001 - Commencement of Manufacturing BOBRN Type Wagon
2002 - Recognition from the Minstry of Defence, Government of India as an ‘Industry Partner’ for wagons and Bridges
2002 - First order for manufacture and supply of Bailey Bridge
2002 - Upgradation of Quality Certification to ISO: 9001-1994 from Lloyd’s Register Quality Assurance, United Kingdom
2002 - Despatch of the first set of components for Bailey Bridge
2003 - Commencement of two new types of wagons BOST and BFNS in the order book
2003 - First order received for supply of Container Flat wagons from CONCOR
2003 - First order for supply of Special Purpose Wagons for the Ministry of Defence
2003 - Upgradation of Quality Certification to ISO: 9001-2000 from Lloyd’s Register Quality Assurance, United Kingdom
2003 - Recognition of In-House R&D unit by the by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Govt. Of India
2003 - Registered Supplier for United Nations Procurement Division for the manufacture and supply of fabricated engineering items
1997 - Year of Incorporation : Development of the Proto Type of BOXN Wagon
1998 - 1st Order from the Indian Railways [For BOXN & BCNA Type Wagons2000 - ISO:9002 Certification from Lloyds UK
2000 - Addition of new type of wagon (BOBYN) in the order book
2001 - Bailey Bridge Division : Only Pvt. Sector Unit Registered with the Ministry of Defence,Government of India.
2001 - Commencement of Manufacturing BOBRN Type Wagon
2002 - Recognition from the Minstry of Defence, Government of India as an ‘Industry Partner’ for wagons and Bridges
2002 - First order for manufacture and supply of Bailey Bridge
2002 - Upgradation of Quality Certification to ISO: 9001-1994 from Lloyd’s Register Quality Assurance, United Kingdom
2002 - Despatch of the first set of components for Bailey Bridge
2003 - Commencement of two new types of wagons BOST and BFNS in the order book
2003 - First order received for supply of Container Flat wagons from CONCOR
2003 - First order for supply of Special Purpose Wagons for the Ministry of Defence
2003 - Upgradation of Quality Certification to ISO: 9001-2000 from Lloyd’s Register Quality Assurance, United Kingdom
2003 - Recognition of In-House R&D unit by the by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Govt. Of India
2003 - Registered Supplier for United Nations Procurement Division for the manufacture and supply of fabricated engineering items
2004 - Received registration from the Ministry Of Defence, Government Of India to be a licensed manufacture of Integrated Field Shelter (NBC Shelter)
2004 - 1st Export Order from Africa
2005 - Order for the MGR Type Wagon from NTPC
2005 - Commencement of Manufacturing BRNAHS Type Wagon
2005 - 1st Private Sector Order of BOXN-HS wagon under OYWS
2005 - Execution of BTA with Hyderabad Industries Limited for Acquisition of Heavy Engineering Division
2005 - Investment in Equity Share of the Company by Strategic Venture (Mauritius) Limited
2006 - Investment in Equity Share of the company by 2i Capital PCC
2006 - Investment in Equity Share of the company by Goya Limited
2006 - Received Quality Certification from ISO: 9001-2000 from Indian Register Quality System (Indian Register of Shipping) for the Heavy Engineering Division
2006 - Roll out first ever wagon manufacture under WIS2006 - First order from Private Sector for supply of Food Grain Wagon
2006 - First order under Privatisation of Container Freight Traffic for Supply Container Flat Wagon
2006 - Addition of new type of wagon (BOXN-LW) in the order book
2006 - First order for supply of tank wagons (BTPN)
2006 - Entered into a memorandum of understanding with M/s Kawada, Inc, Japan, for development of double lane modular bridges, called Kawada System Truss Bridges
Products & Services
Wagon ManufactureOur product range covers a wide variety of wagonsSpecial ProjectsTWL is the premier Organisation for manufacture and supply of BridgesHeavy Earth Moving & Mining EquipmentTWL have the capability to manufacture the various types of Mining EquipmentsFoundry DivisionThe steel foundry division of TWL is capable of producing Liquid MetalRail Coach TWL has drawn out plans to foray into the EMU and Metro Coach Business.
Careers At Our Company
Titagarh Wagons Limited work culture is marked by positive energy, teamwork and performance ethics.We are committed to build an open work environment and result oriented meritocracy.With attractive compensation packages and productive work environment and challenging assignment we are striving to get the best out of our most valuable assets – It’s People.We reward the will to succeed and the desire to compete with the best in the world and to fulfil this we provide various perks to our employees along with a structured system, reward performance and delivers opportunities continuously.
Titagarh Wagons IPO opens on March 24
Titagarh Wagons Limited (“TWL” or the “Company”), a private sector railway wagon manufacturer in India, primarily engaged in the business of manufacturing railway wagons, heavy earth moving and mining equipment, bailey bridges, steel and SG iron castings, is entering the capital market with its initial public offering (“IPO”) of 23,83,768 equity shares of Rs 10 (the “Equity Shares”) for cash at a price to be determined through 100% Book Building Process (the “Issue”). The Issue will open on March 24, 2008 and will close on March 27, 2008. The Price Band has been fixed between Rs 540 and Rs 610 per Equity Share.The Issue comprises a fresh issue of 20,68,111 Equity Shares and an offer for sale of 3,15,657 Equity Shares by Mrs. Rashmi Chowdhary and Strategic Ventures Fund (Mauritius) Limited (the “Selling Shareholders”). The Issue consists of a net issue of 23,68,768 Equity Shares (the “Net Issue”) and a reservation of up to 15,000 Equity Shares for subscription by eligible employees. The Net Issue will constitute 12.8% of the post issue capital of the Company.At least 60% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”). Further, 5% of the QIB portion will be available for allocation to mutual funds only and the remaining QIB portion will be available for allocation to the QIB bidders including mutual funds. Further not less than 10% of the Net Issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the Net Issue will be available for allocation on a proportionate basis to retail investors.
The objects of the Issue are to utilise the proceeds of the Fresh Issue towards the purposes of a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
Titagarh Wagons Limited operates two manufacturing facilities located at Titagarh and Uttarpara, in West Bengal. The Uttarpara unit functions as its second manufacturing plant for wagons, in addition to manufacturing heavy earth moving and mining equipment. As an “Industry Partner” to the Defence Research and Development Organisation, Ministry of Defence (“DRDO”), the Company also manufactures other products for the Indian Defence establishment, such as special purpose wagons, shelters and other engineering equipments.
The Company has also entered into the field of manufacturing and marketing special purpose wagons to suit the varying needs of its customers, such as the Merry-Go-Round (“MGR”) wagons, special wagons for the Indian Defence establishment. It has designed the Wheel-on-Wheels (“WoW”) to enable it to carry various types of trucks, catering to the needs of the logistics industry by providing a Roll-on– Roll-off service. The Company has acquired the Heavy Engineering Division of Hyderabad Industries Limited which includes a manufacturing unit at Uttarpara, West Bengal with a steel foundry, fabrication cum machining facility and access to a rail siding.
The order book of the Company stands at Rs 7,531.1 million with the rolling stock division constituting nearly Rs 6,693.9 million as on January 31, 2008. The Company is structured along three broad business lines: a) wagon manufacturing division, b) special projects division (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division.
Since Fiscal 2003, the Company’s total income and PBT have grown from Rs 471.7 million and Rs 47.1 million respectively to Rs 2,840.5 million and Rs 448.0 million respectively in Fiscal 2007, which represents a CAGR of 57% and 76% respectively, during this period. The wagon dispatches of the Company have increased from 644 wagons in Fiscal 2003 to 2,073 wagons in Fiscal 2007.
The Company proposes to list its Equity Shares on the Bombay Stock Exchange Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). The Book Running Lead Manager (“BRLM”) to the Issue is Kotak Mahindra Capital Company Limited and the Co-Book Running Lead Manager (“CBRLM”) is JM Financial Consultants Private Limited.
Private sector railway wagon manufacturer, Titagarh Wagon is entering the capital market with its initial public offering of 23,83,768 shares of Rs 10 for cash at a price to be determined through 100 per cent book building process. The issue opens on March 24 and closes March 27. The price band has been fixed between Rs 540 and Rs 610 per share. The issue comprises fresh issue of 20,68,111 shares and an offer for sale of 3,15,657 equity shares by Rashmi Chowdhary and Strategic Ventures Fund (Mauritius). The issue consists of a net issue of 23,68,768 shares and a reservation of up to 15,000 shares for subscription by eligible employees. The net issue will constitute 12.8 per cent of the post issue capital of the company. At least 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5 per cent of the QIB portion will be allocated to mutual funds, and the remaining will be allocated to the QIB bidders including mutual funds. Further, not less than 10 per cent of the net issue will be allocated on a proportionate basis to non-institutional bidders and 30 per cent to retail investors. The company plans to utilise the proceeds for - a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes. Titagarh Wagons operates two manufacturing facilities located at Titagarh and Uttarpara, in West Bengal. As an “Industry Partner” to the Defence Research and Development Organisation, Ministry of Defence, the company manufactures special purpose wagons, shelters and other engineering equipments.
The company also manufactures and markets special purpose wagons to suit the varying needs of its customers, such as the Merry-Go-Round wagons, special wagons for the Indian Defence establishment. The company has acquired the heavy engineering division of Hyderabad Industries which includes a manufacturing unit at Uttarpara, West Bengal with a steel foundry, fabrication cum machining facility and access to a rail siding. The order book of the company stands at Rs 753.11 crore with the rolling stock division constituting nearly Rs 669.39 crore as on January 31, 2008. The company is structured along three broad business lines: a) wagon manufacturing division, b) special projects division (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division. Since fiscal 2003, the company’s total income and profit before tax have grown from Rs 47.17 crore and Rs 4.71 crore respectively to Rs 284.05 crore and Rs 44.80 crore respectively in fiscal 2007, which represents a CAGR of 57 per cent and 76 per cent respectively, during this period. The wagon dispatches of the company have increased from 644 wagons in fiscal 2003 to 2,073 wagons in fiscal 2007. The stock will be listed on the Bombay Stock Exchange and National Stock Exchange of India. The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.
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