In a bid to strengthen its position as a total rail solutions provider, Saroj Poddar-led Texmaco Rail and Engineering has decided to acquire a majority 76% stake in Bright Power, an Engineering, Procurement & Construction (EPC) company, for Rs 100 crore.
Bright Power Projects (India), which clocked a net turnover of Rs 78.2 crore last fiscal, is specialised in over head electrification solutions for the Indian Railways.
Significantly, this is the second acquisition for Kolkata-based Texmaco in a short period. The leading wagonmaker had acquired over 49% stake in Gurgaon-based railway infrastructure company Kalindee Rail Nirman (Engineers) in 2013. “The final transaction (for acquiring majority stake in Bright Power) is expected to consummate over two-three months, subject to approvals/conditions and due diligence, with definitive documentation expected to be executed between the parties in 45 days,” Texmaco said in a late evening BSE filing on Monday.
An empowered committee of the board of directors of the wagonmaker has approved the execution of a non-binding term-sheet with promoters of the EPC firm for the acquisition. “The object of acquisition of shares of Bright Power by the company is to enter into OHE rail sector which will enable the company to strengthen its position as a total rail solutions provider company,” the stock exchange filing added.
Texmaco said the acquisition would be funded out of its internal accruals. The governmental or regulatory approvals as may be required for acquisition of shares would be determined post the due diligence.
Bright Power, incorporated in1994, serves diverse sectors such as power, utilities, petrochemicals, pharmaceuticals and real estate. On Tuesday Texmaco’s scrip was up 0.86% at Rs 105.45 on the BSE.