Shares of Titagarh Rail Systems were trading 1% higher on 13 December after the company announced that it had raised Rs 699.9 crore by issuing fresh shares to Qualified Institutional Buyers.

In its regulatory filing, the company said, “In respect of the issue which opened on Monday, 7th December, 2023 and closed on Tuesday, 12th December, 2023, the Qualified Institutions Placement (QIP) Committee at its meeting held today…approved the issue and allotment of 75,02,679 equity shares to the eligible Qualified Institutional Buyers (QIBs) at the issue price of Rs 933 per equity share, aggregating to Rs 69,999.99 lakh.”

The rail major plans to use the proceeds from the QIP to fund some working capital requirements, repay some of its outstanding debt, and for general corporate purposes.

In November, the company entered into a strategic alliance with ABB for metro projects in India and technology transfer.

The company is also planning to increase the production of waggons from 700 per month to 1,000 per month by the end of the current fiscal year.

The company is based in Kolkata and is a leading railway rolling stock manufacturer.

At 3:30 pm, the shares of Titagarh Rail Systems closed 1.03% higher at Rs 1,022 on NSE.