Railway Stock Rises on ₹1600 Crore NCC Order

Titagarh Rail Systems Ltd. on Monday, August 4, said it has won an order worth ₹1,598.55 crore from NCC Ltd. for the Mumbai Metro Rail project of MMRDA.

The contract is for the design, manufacturing, supply,

installation, integration, testing and commissioning of rolling stock, the company said in an exchange filing. It includes five years of comprehensive maintenance after two years of defect liability maintenance period of Line 6 — Swamy Samarth Nagar to Vikhroli — of the Mumbai Metro Rail project.

The time limit for the design and build period is 104 weeks.

Last month, Titagarh Rail said it received a letter of advanced acceptance (LoA) for a ₹312 crore order from the Ministry of Railways.

The

rail infrastructure project is for the manufacturing and supply of 780 BVMC-C Wagons. It is to complete the order in nine months from the placement date.

Last month, the company's board also approved the fund raise of up to ₹200 crore on a preferential basis.

The funds would be raised via the issuance of 21.16 lakh warrants, which will be fully-convertible into equivalent number of equity shares having a face value of ₹2 each.

The warrants will be issued a ₹945 apiece on a preferential basis to promoter

entities.

Shares of Titagarh Rail Systems were trading 2.1% higher at ₹853.8 apiece at 9.25 am on Monday. The stock has declined 9.3% in the past month and 23% this year, so far.

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