RVNL shares rally over 7% on signing MoU with Airports Authority of India

Shares of Rail Vikas Nigam Limited (RVNL) rallied more than 7% on Tuesday after the company signed a contract with the Airports Authority of India (AAI).

The stock rose as much as 7.20% to Rs 267.85 apiece on the National Stock Exchange (NSE) in intraday trade.

At 2:15 pm, the scrip was at ₹262.75. Year-to-date, the stock has gained 44.86%.

In an exchange filing, RVNL said that it has signed a memorandum of understanding (MoU) with AAI for the construction of an underpass to connect the operational area to the AAI residential colony in Kolkata.

The project is estimated to be worth ₹229.43 crore.

Last week, RVNL emerged as the lowest bidder for designing and constructing electric traction for the Rajkharsawan-Nayagarh-Bolani section of the Chakradharpur division of South Eastern Railway worth ₹167.28 crore.

On March 15, the state-run railway company received an order worth ₹339.23 crore from Maharashtra Metro Rail Corporation Limited (MMRCL) for the construction of an “elevated viaduct between PCMC and NIGDI (Bhakti Shakti) on the North-South Corridor of Pune Metro Rail Project-Reach l -Extension”.

The company also recently bagged ₹409.65 crore contract from the Himachal Pradesh State Electricity Board (HPSEB) to develop distribution infrastructure in both north and south zones of the state.

As of Q3 FY24, the company has an order book of ₹65,000 crore. Out of the total, ₹32,000 crire is on nomination basis for railways projects.

Incorporated in 2003, RVNL undertakes rail infrastructure projects including doubling, gauge conversion, railway electrification, new lines, major bridges, workshops production units and sharing of freight revenue.