Texmaco Rail & Engineering rose 3.44% to Rs 108.20 at 9:34 IST on BSE after the company said its board has approved acquiring a majority 76% stake in Bright Power for Rs 100 crore.
The announcement was made after market hours yesterday, 14 September 2015.
Meanwhile, the BSE Sensex was down 11.07 points, or 0.04%, to 25,845.63.
On BSE, so far 64,000 shares were traded in the counter, compared with an average volume of 28,343 shares in the past one quarter.
The stock hit a high of Rs 114 and a low of Rs 107.70 so far during the day. The stock hit a record high of Rs 170.75 on 23 February 2015. The stock hit a 52-week low of Rs 78.35 on 24 September 2014.
The stock had underperformed the market over the past one month till 14 September 2015, falling 10.87% compared with 7.88% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 6.28% as against Sensex's 2.15% decline.
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The small-cap company has an equity capital of Rs 21.01 crore. Face value per share is Re 1.
Texmaco Rail & Engineering said that the duly empowered Committee of Board of Directors of the company at its meeting held on 14 September 2015 has approved the execution of a non-binding term-sheet with promoters of Bright Power Projects (India) (Bright Power) for the acquisition of majority equity share capital (76%) of Bright Power at an enterprise value of about Rs 100 crore, subject to applicable conditions. The acquisition will be funded out of the internal accruals of the company, Texmaco Rail & Engineering said.
Bright Power is an EPC company, incorporated on 10 January 1994, specialising in over head electrification (OHE) solutions for the Indian Railways. It also serves diverse sectors such as power, utilities, petrochemicals, pharmaceuticals and real estate.
With this acquisition, Texmaco Rail will be able to enter into OHE Rail sector and strengthen its positioning as a total rail solution provider company.
The final transaction is expected to consummate over two to three months, subject to certain approvals/conditions and due diligence, with definitive documentation expected to be executed between the parties within next 45 days, Texmaco Rail & Engineering said.
Texmaco Rail & Engineering reported net loss of Rs 4.10 crore in Q1 June 2015 as against net loss of Rs 7.84 crore in Q1 June 2014. Net sales rose 114.92% to Rs 89.43 crore in Q1 June 2015 over Q1 June 2014.
Texmaco Rail & Engineering is a multi-unit multi-discipline engineering and infrastructure company, with 5 manufacturing units extending over 170 acres in the outskirts of Kolkata.
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