Texmaco Rail rallies; to acquire 76% stake in Bright Power

NEW DELHI: Shares of Texmaco Rail erased most of its mornings gains towards the end to close 0.86 per cent higher at 105.45 after surging over 9 per cent in intraday trade. The company said its board has approved acquiring a 76 per cent majority stake in Bright Power for Rs 100 crore. The stock hit a high of Rs 114, up 9.03 per cent, on the BSE in morning trade.

"The duly-empowered Committee of Board of Directors of the company at its meeting held on September 14, 2015 has approved the execution of a non-binding term-sheet with promoters of Bright Power Projects (India) for the acquisition of majority equity share capital (76%) of Bright Power at an enterprise value of about Rs 100 crore," the company said in a filing to BSE.

The objective of acquisition of shares of Bright Power by the company is to enter into OHE Rail Sector which will enable the company to strengthen its positioning as a total rail solution provider company, the statement added.

The acquisition will be funded through internal accruals of the company, it said.

The final transaction is expected to complete in two-three months, subject to certain approvals/conditions and due diligence, with definitive documentation expected to be executed between the parties within next 45 days, the company said.

Texmaco Rail & Engineering is a multi-discipline engineering and infrastructure firm with 5 manufacturing units in Kolkata.