Rail Vikas Nigam jumps 3% on securing ₹239-crore project from Southern Railway

Shares of Rail Vikas Nigam Limited (RVNL) gained 3% on Thursday, April 25, a day after the company announced that it has emerged as the lowest bidder for a project, valued at ₹239.09 crore, from Southern Railway.

In a stock exchange filing on Wednesday, RVNL said, “Rail Vikas Nigam Limited emerges as the lowest bidder (L1) from Southern Railway for Provision of the Automatic Block Signalling system in Jolarpettai Junction to Erode Junction of Salem Division in Southern Railway.”

The order is to be executed within a period of 900 days, the state-owned company informed.

Following the announcement, shares of the Indian Railways public sector undertaking opened higher at ₹288 apiece on the NSE and rallied as much as 3.02% in morning trade to hit an intraday high of ₹292.85 apiece.

In another exchange filing on April 24, RVNL informed that its joint venture with KRDCL has emerged as the lowest bidder from Southern Railway for the redevelopment of Thiruvananthapuram Central Railway Station on engineering, procurement, and construction (EPC) basis. The project valued at ₹439 crore is set to be executed within a period of 42 months. RVNL holds a 49% stake in the joint venture, while KRDCL owns the majority stake of 51%.

Recently, RVNL also inked a Memorandum of Understanding (MoU) with Turkish Engineering Consulting and Contracting - TUMAS India Private Limited for partnership and collaboration in public transportation projects and infrastructure projects in India.

Shares of RVNL closed 0.72% higher at ₹286.3 apiece, with a day high of ₹292.8 per share on the NSE.