Texmaco Rail & Engineering is set to acquire Jindal Rail Infrastructure Ltd (JRIL) for a total consideration of approximately Rs 615 crore, marking a significant move in the logistics and rail infrastructure sector. This acquisition involves purchasing securities from JRIL’s current holders, JITF Urban Infrastructure Service Ltd (JUISL) and Siddeshwari Tradex Pvt Ltd (STPL).
In a recent exchange filing, Texmaco Rail & Engineering revealed that its Board of Directors has approved the acquisition of all rights, titles, and interests in JRIL’s securities held by JUISL and STPL. To formalise the acquisition, Texmaco will sign separate Securities Purchase Agreements (SPA) with JUISL and STPL. The company will pay Rs 465 crore to JUISL and Rs 150 crore to STPL.
“The acquisition will aim towards leadership in special-purpose private freight rolling stock, both domestic and international; open opportunities for new product lines including other rolling stocks; and contribute to the company’s presence in western India along with unique opportunities for enhanced exports,” Texmaco stated.
This strategic move is expected to bolster Texmaco Rail & Engineering’s position in the logistics sector, particularly in freight rolling stock. By integrating JRIL’s assets and expertise, Texmaco aims to expand its product offerings and strengthen its market presence in western India, creating new opportunities for enhanced exports.
The acquisition aligns with Texmaco’s long-term strategy to diversify its product lines and increase its footprint in key regions. It underscores the company’s commitment to enhancing its capabilities and expanding its reach in the rail engineering and logistics sector. With this move, Texmaco Rail & Engineering is poised to become a leader in the private freight rolling stock market, driving growth and innovation in both domestic and international markets.
