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Jayanta Mallick

Kolkata, Nov. 28 TIL is issuing equity warrants to individuals and entities of the promoters and Enam to mop up around Rs 98 crore to part finance its expansion. The warrants, convertible into equity of Rs 10 each, are at a premium of Rs 316.

The stock, currently trading at Rs 576, had touched its 52-week high at Rs 583 on November 20. The TIL stock has improved over 63 per cent in the last one month.

TIL is expanding its material handling, construction and mining equipment range at a cost of around Rs 200 crore, Mr S. Mazumdar, MD and CEO, told Business Line today.

TIL is also planning to invest in a finance company in India with Caterpillar Financial Services Asia Pte Ltd, Singapore, an affiliate of Cat Financial of US.

Mr Mazumdar confirmed that talks are currently on with Caterpillar. “TIL may take 12.5 per cent stake in the venture. Cat Financial, a wholly owned subsidiary of Caterpillar Inc, provides a range of equipment financing alternatives.”

A project report for TIL’s new plant for construction of road, ports and coal handling equipment, to be set up in West Bengal in the next fiscal, is being prepared. “We are looking for ways, including debt, to finance the rest of the capex. Enam is likely to help us in this exercise,” Mr Mazumdar added.

TIL, manufacturer of construction and industrial equipment and a dealer for Caterpillar for North and East India, has three subsidiaries in Myanmar, Nepal and Singapore. Grove Europe Ltd, through Coles Cranes, UK, holds 19.84 per cent in TIL’s equity of Rs 9.73 crore.

Total income for 2006-07 stood at Rs 578 crore and the reserves and EPS were at Rs 58 crore and Rs 18.67 respectively.

It recorded 87.15 per cent growth in net profits to Rs 6.12 core for the quarter to September 30. Total income rose 24.23 per cent to Rs 178 crore and EPS stood at Rs 6.29 for the Q3.

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