Engineering company Cimmco Ltd will merge with its parent Titagarh Wagons Ltd (TWL), as per the latest release to the exchanges. Through the idea of amalgamation, TWL promoters aim to raise its total stake from 45.7% to nearly 50.9%.
After the merger, TWL plans to allot its 13 shares worth Rs. 2 each for every 24 Cimmco shares. In oredr to iniste the merger, TWL will be deinvesting nearly 4.49% from its stake in its subsidiary Cimmco Ltd in the open market.
As per the latest revenue report (2018-19), Titagarh Wagons reported Rs 910 crore and Cimmco recorded Rs 257 crore.