GE-Backed Titagarh Declines as India May Allow More Wagon Makers

Titagarh Wagons Ltd., an Indian railway wagon-maker partly owned by General Electric Co., and rival Texmaco Ltd. slumped after the government said it may permit more companies to make rail equipment.

Titagarh lost 6.6 percent to 405.65 rupees as of 1:55 p.m. in Mumbai, poised for its lowest close in almost five months. Texmaco dropped 2.6 percent to 41.85 rupees. Kalindee Rail Nirman Engineers Ltd., which makes signaling systems, plunged 10 percent to 148.5 rupees, extending four days of losses.

Indian Railways has asked a six-member panel to evaluate private participation in all projects, including electric and diesel locomotive manufacturing plants, Vivek Sahai, chairman of the Railway Board told reporters in New Delhi yesterday. The government may allow more companies into the sector, said Kamlesh Kotak, head of research at Asian Markets Securities Pvt.

“The proposal may go completely against wagon- manufacturing companies, mainly Titagarh and Texmaco,” Kotak said. “The incremental growth will be spread to many players rather than few players.”

Titagarh, based in Kolkata, is 13.5 percent owned by GE’s unit GE Capital, according to data compiled by Bloomberg.

To contact the reporter on this story: Hemal Savai in Mumbai at at hsavai@bloomberg.net.

To contact the editor responsible for this story: Stephen Foxwell at at sfoxwell@bloomberg.net.

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