Titagarh Wagons Ltd is a wagon and railway coach manufacturer. Today, the company had announced its demerger plans to make its coach manufacturing business into a new company were cancelled. This was after the sluggish order flows for wagons from the market.
According to the Titagath Managing Director Umesh Choudhary, "We have decided to scrap our plans to restructure business which included separating the coach division, with the idea behind it being to have separate coach and wagon manufacturing units." He also added that the spinoff was cancelled because the company aimed to concentrate more on each of its current division units.
Last November, the Titagarh Wagosn board of directors approved the demerger. The latter approved plan was for the division to become a subsidiary arm of Titagarh Wagons Ltd.
As part of the demerger plans, shareholdings also would be affected. For every 100 shares held by Titagarh Wagons, their subsidiary would allow 12 equity shares to equity shareholders. The subsidiary was to allot 12 equity shares to the equity shareholders of Titagarh Wagons Ltd for every 100 shares held by them.
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