Texmaco Rail shares gain 3% on plan to raise funds via QIP

Shares of Texmaco Rail & Engineering Ltd rose over 3% on Friday after a report said the railway firm was likely to raise  Rs 250 crore via a Qualified Institutional Placement (QIP) issue.

Texmaco Rail & Engineering shares gained 3.32% to Rs 170.90 on BSE in the current session. Total 0.99 lakh shares of the firm changed hands amounting to a turnover of Rs 1.64 crore. Market cap of the firm stood at Rs 6325 crore.

The stock fell to a 52 week low of Rs 40.49 on March 29, 2023 and rose to a 52 week high of Rs 231.90 on February 2, 2024 on BSE. Texmaco Rail shares have a beta of 0.8, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 43.6, signaling it's trading neither in the overbought nor in the oversold zone. Texmaco Rail shares are trading higher than the 5 day, 10 day, 150 day, 200 day but lower than the 20 day, 30 day, 50 day, 100 day moving averages.    

In the last one year, the Texmaco Rail stock has surged 263.57%.

The funds from the QIP will be used for expansion of the company.

The company is expected to offload 4.21 percent equity at an indicative price of Rs 155 for the QIP, the report stated. The indicative price for the QIP is at an over 6 percent discount to Texmaco Rail's previous close.

Nuvama Wealth Management is said to be the sole Book Running Lead Manager for this QIP.

About the company

Texmaco Rail & Engineering manufactures a diverse range of products, such as railway freight cars, hydro-mechanical equipment and industrial structural’s, loco components and loco shells, steel girders for railway bridges, steel castings, and pressure vessels along with engineering, procurement, construction (EPC) contracts for execution of railway track, signaling and telecommunication projects, rail electrification and automatic fare collection on turnkey basis.