Texmaco Rail acquires Jindal Rail Infrastructure; shares rise

However, the stock erased gains and was trading higher by 0.5% at ₹277. The company announced that it has signed definitive agreements to acquire a 100% shareholding in JRIL on a fully diluted basis. The transaction is subject to certain closing adjustments and conditions that are expected to be met within 45 days. JRIL's enterprise value is pegged at ₹687 crore, which results in the transaction representing an FY24 EV/EBITDA multiple of 8.1x.

The company stated that JRIL G-105 is a certified agency that focuses on commodity-specific special-purpose wagons for private sectors and can supply the Indian Railways. The acquisition will allow Texmaco to boost JRIL’s wagon production with minimal capital expenditure. Additionally, it will accelerate expansion and provide flexible manufacturing opportunities.

Moreover, Texmaco will benefit from its acquisition of JRIL as it will result in higher cost savings, better EBITDA margins and will allow the company to expand into Western India.

Sudipta Mukherjee, managing director of Texmaco, stated that the acquisition of JRIL will put Texmaco at the forefront of the freight rolling stock market domestically and globally in a shorter term. Further, the acquisition will result in the company venturing into new markets and contributing to the government’s plan of Atmanirbhar Bharat.

“This also opens tremendous opportunities to expand more on the whole Railway Rolling Stock and Component Value Chain with a foray into newer product lines.” He said.

The company's shares have surged nearly 60% since the beginning of the year, and the stock has gained over 190% in the past year.

“This also throws open tremendous opportunities to expand more on the whole Railway Rolling Stock and Component Value Chain with foray into newer product lines.” He said.

Shares of the company have risen by nearly 60% since the beginning of the year. The stock has gained over 190% in the past year.