General Electric (GE) has picked up 15% stake in Kolkata-based wagon manufacturer Titagarh Wagons (TWL). While the deal amount stands undisclosed, it is estimated that GE has picked up the stake for more than $20 million. TWL is also looking to come up with an initial public offer in the near future.
The equity investment from GE marks the entry of GE’s Equipment Services business in India. GE Equipment Services, in turn, is part of GE Industrial, which is the second largest revenue generator for the $163-billion conglomerate.
Last year, private equity firm ChrysCapital had picked up 10% stake in TWL for about $10-15 million. Given this valuation, a 15% stake today would have fetched more than $20 million to the promoters. The revenues of the company shot up significantly over the past year to hit the Rs 330-crore mark with a net profit of Rs 29 crore.
(Source: Economic Times)
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