Italian govt may invest in Titagarh Wagons's subsidiary Firema SPA

Kolkata: The Italian government is likely to acquire at least 20 per cent stake in Titagarh Wagons's wholly-owned subsidiary Firema SPA, sources said on Sunday.

Invitalia, the Italian government's investment promotion agency, will be acquiring 20-30 per cent stake in Firema, they said.

Titagarh Group was in dialogue with the Italian government for capital support after the company faced financial headwinds during the pandemic.

Firema, which is executing railway projects in Europe, is also instrumental in building India's first aluminum coach, for Pune Metro.

"It is a major breakthrough that the Italian government will pick up a stake, apart from a PE investor, in Firema. The promoters will also infuse fresh capital. We cannot disclose the details at this moment due to confidentiality clauses until all approvals are in place," Titagarh Wagons MD Umesh Chowdhary said

from Italy.

Italian railway firm Firema was taken over by the Kolkata-based Titagarh Group

in 2015.