The Hindu Business Line : Titagarh Ind up on buying frenzy

Titagarh Industries on Monday sprang up by 20 per cent to close at Rs 42.40 on the BSE with 1.53 lakh shares changing hands. The stock, which was gradually coming to activity after a comprehensive settlement with the ARCIL (over the NPAs it took over from the company’s lender banks and institutions) as well as restructuring of its businesses, jumped on psychological boost. GE on Monday announced that its arms picked up 15 per cent stake in Titagah Wagon, an unlisted entity of the Kolkata-base group headed by Mr J.P. Chowdhary. Titagarh Industries’ wagon related operations, such as castings and manufacturing of component (couplers), continue to remain with the company, Mr Umesh Chowdahary, MD of Titagarh Wagon, and son of Mr J.P. Chowdhary, clarified. “The two companies have no equity relationship, but have an operational synergy as Titagarh Industries could supply to Titagarh Wagon when railway components are not part of the free-supply arrangement with the Indian Railways. Titagarh Industries having hived off its non-starter paper business, held through another a subsidiary, into a special purpose vehicle, is now left with manufacturing of casting products and components. According to market sources, there has literally been scramble by operators for buying the stock as sentiment became buoyant before it froze at the upper circuit. In the last one week, the stock gained over 25 per cent and in past one month the stock has improved by over 50 per cent. The promoters also picked up stake in the last few months as part of the restructuring process. The promoters stake in the company had come down to 26.75 per cent as on March 31, 2007 after issue of fresh shares .

Jayanta Mallick

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