InvestorQ : Why was Titagarh wagons up so sharply on 17 June?
Debbie Mascarenhas made post

Why was Titagarh wagons up so sharply on 17 June?

Answer
user profile image
Crowny Pinto answered.
3 months ago


The stock of Titagarh Wagons was on 5% upper circuit after it announced a tie-up with ABB Ltd. This is an exclusive cooperation agreement with ABB to address the large and growing business of propulsion equipment (traction converters) for the Indian Railways. Under the terms of the agreement, Titagarh and ABB will jointly design, develop and manufacture 3-phase IGBT-based propulsion systems for EMU/MEMU. These would be manufactured at Titagarh’s plant in Kolkata while some of the components will be supplied by ABB. The first of these joint products are expected to roll out in the next 2 years time frame. Currently, Titagarh has bagged an order for propulsion systems required in the EMU/MEMU trains from the Indian Railways for order value of Rs.65 crore. These orders will be executed on the basis of the ABB agreement. In response, the stock of Titagarh Wagons was locked in 5% upper circuit on 17 June. It is expected to be value accretive both in terms of top line and bottom line for the company.