Texmaco Rail & Engineering has signed an agreement to bring in an external investor into its defence subsidiary. This will see the company’s shareholding in the unit fall from 100% to 70%. The Kolkata-based company disclosed the development to stock exchanges.
Texmaco Rail signs Rs 200 crore investment deal for defence subsidiary
The company entered into a Share Subscription and Shareholder’s Agreement on August 14 with Texmaco Defence Technologies, its wholly owned subsidiary, and Vagus Def Tech & Aerospace Fund-1, referred to as Calculus in the filing. Under the agreement, Calculus will invest up to Rs 200 crore in the defence unit.
The investment will come in two tranches. The first Rs 100 crore will be used to subscribe to fresh equity shares in Texmaco Defence Technologies. The remaining Rs 100 crore will be routed through equity instruments, debt instruments, or another structure to be mutually agreed between Texmaco and Calculus.
Texmaco Defence Technologies’ stakeholding to change after fresh equity issue
Once the subscription is complete, Calculus will hold 30% of the equity share capital of Texmaco Defence Technologies. Texmaco’s own stake in the unit will correspondingly come down to 70%, and the subsidiary will no longer be classified as wholly owned.
The company clarified in its disclosure that no consideration will flow to Texmaco as part of the transaction, since this is a dilution through fresh investment rather than a sale of existing shares. It also said the transaction does not qualify as a related party deal, as neither the promoters nor the promoter group hold any interest in Calculus.
Texmaco Rail defence investment to close within 90 days
The transaction is expected to be completed within 90 days of the agreement date. As per figures disclosed for the year ended March 31, 2026, Texmaco Defence Technologies reported a net worth of Rs 0.01 crore and did not report any revenue or turnover for the period, reflecting its early stage as a business.
About Texmaco Rail & Engineering
Texmaco Rail & Engineering is a multi-discipline engineering and infrastructure company with six manufacturing units. The company makes rolling stock, including wagons, coaches, EMUs and loco shells, along with hydro-mechanical equipment, steel castings, bridges and other steel structures. It has been a major freight car manufacturer for close to eight decades, supplying core sectors such as cement, steel, defence, fertiliser and thermal power, and has also built a presence in overseas markets backed by projects funded by the World Bank and the Asian Development Bank.
According to the company, it operates through several subsidiaries and joint ventures, including a tie-up with US-based Wabtec Corporation and a partnership with French firm Touax Rail for wagon leasing.
Texmaco Rail & Engineering share price
Texmaco Rail & Engineering’s share price has been up 0.86% as of intraday on August 17, 2026. The company’s stock price has been down 10.68% in the past month and it has been further down 21.28% in the past year.