Texmaco Rail and Engineering Ltd, which is part of the Saroj Poddar-led Adventz Group, has sold a 10% stake in its subsidiary Texmaco Defence Systems Pvt. Ltd, the company said in a stock-exchange filing.
It did not disclose the financial details of the stake sale and the name of the buyer.
Post the transaction, Texmaco Defence has ceased to be a subsidiary of Texmaco Rail. However, Texmaco Rail will continue to hold a 41% stake in Texmaco Defence.
Shares of Texmaco Rail were trading 4.88% down at Rs 18.50 apiece at the time of writing this report.
Texmaco Defence, which was incorporated in January 2018, says it aims to augment India’s defence production capabilities under the government’s Make in India programme. The company says it leverages its former parent’s rail manufacturing and heavy engineering capabilities to meet its goals, according to its website.
The firm has procured defence production licences for the design, development and manufacturing of several defence-related machines and equipment and says it has also tied up with global original equipment manufacturers (OEMs).
It has provided services including the refurbishment and upgradation of Indian Army tanks, the manufacture of small arms and assault rifles, and the production of light and medium armoured vehicles.
Texmaco Rail, meanwhile, says it has five manufacturing units spread over 170 acres. The company is the flagship enterprise of the Adventz Group, which also consists of companies including Zuari Agro Chemicals, Zuari Infraworld India Ltd. and Hettich India Pvt. Ltd.
Some of Texmaco’s capabilities include rolling stock, steel foundry capabilities, hydro-mechanical equipment and steel structures, traction and coaching capabilities, and rail engineering, procurement and construction.
In April last year, it acquired a steel casting foundry of manufacturing company Simplex Castings Ltd for Rs 87.7 crore.