Titagarh Wagons shares increased 5% to a 52-week high in early trade, a day after the company announced to consider a proposal to raise funds on June 10. The fund raised will be either under rights issues, i.e., preferential shares, or the qualified institutional placement of equity.

Besides, investors will be focused on how the company chooses for the fundraising. In the rights issue, the company would decide if the stock’s floor price is lower than the market price of the stock. If the company denies this route, the stock will witness a knee-jerk reaction, as investors may book profits.

At 9:17 am, Titagarh Wagons shares were trading at Rs 409 on the NSE, up 4.60% from the preceding close, hitting a 52-week high of Rs 410 intraday.

Recently, it rebranded itself from Titagrah Wagons to Titagarh Rail System. Umesh Chowdhary, VC and MD of Titagarh Wagons stated that Titagarh Rail Systems objects to showcasing its expertise in wagon manufacturing and other aspects of rail infrastructure growth and modernisation. The company plans to merge the shipbuilding business in the defence segment with the freight rail system sector.

The company posted a robust financial performance for March. Net profit for wagon manufacturers rose twofold on year to Rs 48 crore while revenue plunged 131% to Rs 974.21 crore.

The firm believes that Titagarh Wagons is all set to mark in the passenger business after achieving leadership in the freight segment. The current metro rail boom in India and the awaiting rollout of high-speed rail travel should strengthen the position, per the Nuvama Institutional Equities.

Sentiment for railway stocks is running high amid the government’s strong capital expenditure plans. Cashing the upbeat, the stock grew 285.26% in the past year, making it a multi-bagger.