GE Equipment Services, a part of GE India, valued the Kolkata-based Titagarh Wagons Ltd at Rs 524 a share when it bought a 15% equity stake in privately-held Titagarh in mid- July. The deal valued the wagon-making company at Rs 966 crore.
When GE India had announced the deal, the price had not been disclosed. Since then, Titagarh Wagons has filed its plans for an initial public offering (IPO).
At Rs 524 for each convertible preference share plus a 5.88% stake in the pre-issue equity at Rs 509 a share, GE has invested Rs 132 crore into the company. It is GE Capital International (Mauritius) — also from the GE stable — that has taken an equity exposure in the JP Chowdhary Group company. Titagarh has entered into a separate technical collaboration with GE Equipment
Services. GE Capital International (Mauritius) had subscribed to 1,679,390 preference shares paying Rs 524 a share, Titagarh has now disclosed, following a shareholder agreement inked on July 6, 2007. This entailed an investment of Rs 88 crore by the GE arm in Titagarh. Just after this deal, the promoter group sold 864,440 equity shares in the company at a valuation of Rs 509 a share on August 13. While the preference shares already being converted into equity shares after Titagarh received a request for such, the company has now proposed to allot another 20,20,000 shares to GE.