The board of directors of Texmaco Rail and Engineering on Friday approved plans to raise Rs 1,000 crore by issuing equity shares through qualified institutional placement.

The company in a stock exchange filing also said that it is issuing up to 33,78,375 equity shares to the promoter/promoter group for an amount not exceeding Rs 50 crore.

This includes Rs 40 crore from Adventz Finance Private Limited and Rs 10 crore from Saroj Kumar Poddar, chairman, Texmaco Rail and Engineering.

The promoter holding of the company was at 58.70 per cent as of the quarter ended June 2023.

With Indian Railways looking to double the freight capacity to reach 3,000 million tonnes by 2027, Texmac Rail has recently entered into a strategic alliance with Hindalco to manufacture aluminium rail wagons and coaches.

The company, which is part of the Saroj Poddar-led Aventz group, in April had announced a joint venture with Nymwag, a Czech Republic-based company under AZC group to set up a new company in Calcutta focussed on freight car manufacturing and production of components related to freight cars and railway wagons for domestic as well as export markets.

The 50:50 JV has plans to set up a manufacturing unit.

In its first-quarter earnings call, Texmaco Rail officials had said that the company has an order book of around Rs 8,000 crore, of which rolling stock was Rs 5,400 crore.