Titagarh Wagons (TWL), 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, has fixed the issue price at Rs 540 per equity share for its initial public offering (IPO) of 23,83,768 equity shares of Rs 10 for cash at a price determined through 100% book building process.

The issue closed on March 27, 2008, and was subscribed to 6.75 times based on the preliminary bidding data received from the stock exchanges on the closing day. The qualified institutional bidders portion was subscribed approximately 10.37 times; the non institutional bidder portion was subscribed approximately 2.77 times; and the retail bidder portion was subscribed approximately 0.98 times. The company proposes to list its equity shares on the Bombay Stock Exchange and the National Stock Exchange.

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 and a reservation of up to 15,000 equity shares for subscription by eligible employees. The net issue constitutes 12.8% of the post issue capital of the company.

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.

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.

The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co-book running lead manager is JM Financial Consultants Private Limited.