Titagarh Wagons, leading private sector wagon manufacturer is hitting the market with an initial public offer (IPO) of 24.87 lakh shares of Rs 10 each on March 24, 2008.

The issue comprises a fresh issue of 20,68,111 Equity Shares and an offer for sale of 3,15,657 Equity Shares by Mrs. Rashmi Chowdhary and Strategic Ventures Fund (strategic Partners).

The company has fixed the price band at Rs 540 to Rs 610 a share. The issue will open for subscription on March 24 and close on March 27.

Titagarh Wagons is primarily engaged in manufacturing railway wagons, prefabricated steel bridges and heavy earth moving and mining equipment.

The company is planning to raise approximately Rs 129 crore to Rs 145 crore, out of which the company will get Rs 111.6 crore to Rs 126 crore

The IPO proceeds would be utilized for setting up an EMU manufacturing facility at Uttarpara Unit, modernizing and expanding the existing facilities at Titagarh and Uttarpara units, setting up of axle machining and wheelset assembly facility at Uttarpara unit, constructing a corporate office and a design cum research and development office.

The company proposes to list its Equity Shares on the Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE").

The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.