Texmaco Rail and Engineering, on 11 August, announced that the company has allied with Hindalco Industries to make aluminium rail wagons and coaches. Post the announcement, the shares of Texmaco reached a new 52-week high of Rs 118.40 per piece on NSE.

Texmaco will set up a factory, provide skilled workers, and design the project, whereas Hindalco
will provide profiles, sheets and plates of its unique aluminium alloys, along with their fabrication and welding expertise.

The company has a long presence in railway wagon manufacturing and has gradually moved into manufacturing commodity-specific wagons, electric locomotive shells, and sub-assemblies supplied to private firms.

In July, the board of directors of Texmaco approved raising funds to Rs 500 crore, by way of issuances such as equity shares, convertible and non- Convertible securities, preference shares, and warrants, either by way of rights issue or preferential issue or qualified institutional placement or follow-on public offer, or a combination of thereof or through any other mode.

The company saw a decline in net profit for the June quarter at Rs 12.75 crore against the Rs 20.54 crore reported in the year-ago quarter. Operations revenue was Rs 656.82 crore against the Rs 298.70 crore reported in the year-ago quarter.

At 12:45 pm, Texmaco Rail and Engineering shares were trading at Rs 116.40 or 1.39% above its previous close.