Rail Vikas Nigam shares rally 8% after grabbing new orders of ₹2,000 crore

Rail Vikas Nigam Ltd (RVNL) shares rallied more than 8% on Monday after the rail PSU announced that it has bagged multiple orders of around ₹2,000 crore.

Shares of the construction arm of the Railways Ministry opened on a firm note and advanced further by 8.42% to hit a high of ₹258 per share on the National Stock Exchange in morning deals.

Around 1.25 crore shares of the company changed hands in the morning deals while the traded value stood at nearly ₹317 crore.

RVNL over the weekend announced winning orders of around ₹2,000 crores from various entities.

The orders received include ₹1,297-crore contracts from Himachal Pradesh State Electricity Board Ltd for the development of distribution infrastructure in the state.

RVNL bagged two contracts – a ₹889 crore order for the development of distribution infrastructure at the South Zone and another around ₹410 crore order for developing infrastructure for the North Zone.

The projects are under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme called Loss Reduction Works.

The rail PSU also bagged a ₹543 crore order from Madhya Pradesh Metro Rail Corporation. The order is for part design and construction of an elevated viaduct and five elevated metro rail stations, among others. Elevated metro stations will be built at Shaheed Bagh, Khajrana Chauraha, Bengali Chauraha, Patrakar Colony and Palasia Chauraha in the state.

The company also received a ₹251 crore order from Jabalpur-based Madhya Pradesh PoorvKshetra Vidyut Vitaran Company Ltd. The order is for the commissioning of 11 KV line associated works such as 11 KV Line bifurcation, 11 KV line interconnection and others under the revamped reforms-based and results-linked distribution sector.

RVNL shares have jumped more than three-fold from the 52-week low level of ₹60.30 on March 16, 2023.