Texmaco Rail & Engineering board on Tuesday approved the transfer or restructuring of the whole rail EPC (engineering, procurement, and construction) business by way of slump sale to two separate wholly owned subsidiaries of the company. Rail EPC business comprises Kalindee Rail and Bright Power units.

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The transfer of the Kalindee Rail and Bright Power units of rail EPC business is taking place to two separate wholly-owned subsidiaries of the company. The two acquiring entities include Texmaco Rail Electrification Ltd and another wholly-owned subsidiary, which is in process of incorporation.

The multi-unit engineering and infrastructure company, Texmaco has said appropriate business transfer agreements in connection with this transfer shall be executed on a date and in a manner as may be advised by tax and legal advisors. The effective date is April 1, 2023.

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Upon receipt of approval from the relevant stakeholders, the slump sale shall be effective with effect from April 1, 2023.

Rationale for slump sale

Texmaco Rail said it has been evaluating its position and business strategy and exploring various options to remain ahead of the competition. It believes that rationalisation of the structure will provide opportunities to enhance shareholders’ value in the company.