Texmaco Rail and Engineering on Thursday said it is looking to acquire a 100 per cent stake in Jindal Rail & Infrastructure Limited (JRIL) for a cash consideration of ₹615 crore, marking its expansion into western India.

“Texmaco has agreed to acquire the entire shareholding of JRIL for a cash consideration of ₹615 crore, which is subject to certain closing adjustments. The enterprise value of JRIL is ₹687 crore and the transaction represents an acquisition FY2024 EV/EBITDA multiple of 8.1x,” Texmaco said in a statement.

“While definitive agreements have been executed, the transaction is subject to certain conditions precedent for closing, which are expected to be completed within 45 days,” the statement said.

The company has entered into definitive agreements with JRIL, JITF Urban Infrastructure Services Limited, and Siddeshwari Tradex Private Limited for the acquisition.

“The JRIL acquisition will exponentially boost our participation in domestic and foreign markets, catalysing the nation’s economic growth” said Saroj Kumar Poddar, chairman of Texmaco.

“We are ever focused on forming strategic alliances to boost growth and enhance synergies across the industry, and this low-risk acquisition is in line with our overarching vision” said Indrajit
Mookerjee, vice-chairman of Texmaco.

“This acquisition gives Texmaco Rail a significant lead in the freight rolling stock market within the country and on the international rail freight industry map on a shorter term. This also throws open tremendous opportunities to expand more on the whole railway rolling stock and component value chain with foray into newer product lines,” said Sudipta Mukherjee, managing director of Texmaco.

With its manufacturing unit at Vadodara, Gujarat, JRIL specialises in manufacturing commodity specific special purpose wagons primarily for the private sector in India. Operational since 2012, JRIL has delivered over 8,600 wagons to customers in India and abroad. JRIL meets the technical and pre-qualification criteria for major Indian and international wagon tenders.

In 2023-24, JRIL manufactured over 1,650 wagons.