Texmaco Rail and Engineering on Wednesday said that it will not proceed with a proposed rights issue amid the crash in the economy. Instead its promoters will infuse Rs 200 crore through a preferential allotment.
Texmaco said its board had met on Tuesday and decided to call off the rights issue because its share price had fallen since the rights were announced in April. “In view of the impracticality of the issue now, the board has decided not to proceed with the rights issue.”
On the BSE, Texmaco shares fell to Rs 37 on Wednesday compared with a 52-week high of Rs 56.15.
The gross revenue of the Adventz group firm, headed by Saroj Kumar Poddar, for the April-June quarter was Rs 225 crore compared with Rs 399 crore in the corresponding period a year ago.
Net loss during the quarter was Rs 27 crore compared with a profit of Rs 10 crore in the corresponding period previous year.
“The silver lining is privatisation of railway services and boost to rail infrastructure. This would lead to generation of new opportunities,” Texmaco said.
