The board of directors of Jupiter Wagons has given its approval to raise Rs 700 crore through a qualified institutional placement. The company has planned a capital expenditure of around Rs 1,200 crore over the next two years.

The funds raised would be used to support the company’s capital expenditure.

“We are scaling up our wagon manufacturing capacity from around 700 wagons per month to around 800 wagons by the end of the year and then 1,000 wagons per month next year,” Vivek Lohia, managing director, Jupiter Wagons, told The Telegraph.

The company is also scaling up its foundry capacity from around 2,500 tonnes per month to around 4,000 tonnes per month. This includes setting up a new foundry at its Jabalpur unit at Madhya Pradesh. “The investment in foundry and fabrication is expected at around Rs 300-350 crore,” Lohia said.

The company is also setting up a greenfield wheelset manufacturing plant and it will help the company to strengthen its domestic manufacturing capabilities.

In total the company has plans to invest Rs 1,200 crore over the next two years in phases across projects.

Jupiter Wagons in its first quarter investor presentation said it has entered into a memorandum of understanding with RITES to explore opportunities in the international market for supply of railway rolling stocks and has participated in global tenders in Zimbabwe and Mozambique.

The company has also received the NCLT approval for acquisition of Stone India and a significant portion of the products manufactured by the company would be utilised for captive consumption by group entities besides supply to Indian Railways and private players.