Saroj Poddar-led Adventz Group firm Texmaco Rail and Engineering Ltd has obtained its board approval to acquire 76 per cent equity stake in Mumbai-based Bright Power Projects (India) Pvt Ltd at an enterprise value of Rs 100 crore ($15 million), as per a stock market disclosure.
The acquisition is part of Texmaco's plans to foray into over-head electrification (OHE) rail sector which will enable it to strengthen its positioning as a total rail solution provider, Texmaco said in the disclosure.
It will fund the acquisition through internal accruals.
The final transaction is expected to be completed over two-three months, subject to certain approvals, conditions and due diligence, it added.
Incorporated in 1994, Bright Power is an engineering procurement and construction company, specialising in OHE solutions for Indian Railways. It also serves diverse sectors such as power, utilities, petrochemicals, pharmaceuticals and real estate.
In the financial year 2014-15, Bright Power had a turnover of Rs 78.2 crore.
Texmaco (formerly Texmaco Machines Ltd) is a freight car manufacturing company. The company, which is engaged in the heavy engineering and steel foundry business, provides rail freight cars and diversified engineering services. The firm has five manufacturing units.
Last December, the company had raised Rs 300 crore (approximately $48.39 million) through a qualified institutional placement.
Earlier, in 2013, it had acquired a 12.43 per cent additional equity stake via an open offer in public listed Kalindee Rail Nirman Engineers Ltd, engaged in railway signalling, telecommunication and track-laying and related civil work, including railway electrification. This sealed the takeover battle with Jupiter Metal for Kalindee Rail Nirman. It had made a competing offer against Jaipur-based Om Kothari Group-controlled Jupiter Metal’s takeover bid.
