RVNL shares jump 5% on emerging lowest bidder for multiple projects worth ₹304 crore
Upstox
2 min read • Updated: April 1, 2024, 1:06 PM
Summary
RVNL along with its joint venture partner Salasar Techno Engineering Ltd emerged as the lowest bidder from Energy Development Corporation Ltd (EDCL) for “plant design, supply and installation of 45.8 km, 110Kv Double Circuit Rukarara-Huye-Gisagara transmission lines
Shares of state-owned Rail Vikas Nigam Ltd (RVNL) jumped as much as 5% on Monday, April 1, after the company announced that it has emerged as the lowest bidder for multiple projects worth ₹304 crore.
One of the projects is worth ₹148.26 crore for the Kharagpur division of the South Eastern Railway to meet the 3,000 MT loading target.
In a filing to the stock exchanges, the railway PSU said that the project involves “design, supply, erection, testing and commissioning for upgradation of electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Kharagpur (Excl.) Bhadrak (Excl.) section of Kharagpur division”.
Separately, RVNL informed the stock exchanges that the company along with its joint venture partner Salasar Techno Engineering Ltd emerged as the lowest bidder from Energy Development Corporation Ltd (EDCL) for “plant design, supply and installation of 45.8 km, 110Kv Double Circuit Rukarara-Huye-Gisagara transmission lines.”
The size of the international contract is $7.15 million, or roughly ₹60 crore.
Lastly, RVNL has also emerged as the lowest bidder for a nearly ₹96 crore contract from NF Railway Construction for “engineering, procurement, construction of design, supply, erection, testing and commissioning of 25 KV, 50 Hz, single phase, AC, electrification OHE and TSS Works of Araria - Thakurganj New line section in connection with the New Line Project of Araria-Galgalia of N.F. Railway”.
The contract includes “associated works and supply, erection, modification, testing and commissioning of SCADA (supervisory control and data acquisition) for the section in EPC (engineering, procurement and construction) mode”.
Following the announcements, shares of RVNL gained as much as 5.06% to hit an intra-day high of ₹265.7 apiece on the NSE. However, the stock pared some of its early gains to trade at ₹261.1, up 3.2% at 12:34 pm.
Notably, the RVNL stock has surged almost three and a half times in the span of the past one year. Year-to-date, it is up almost 43%.