RVNL shares surge 4.6%, post biggest single-day gain in over seven months; here is why

RVNL post market hours on Thursday said that it emerged as the lowest (L1) bidder for East Coast Railway's third and fourth lines between Nergundi-Barang (22Km) and Khurda Road-Vizianagaram (363Km) on Bhadrak- Vizianagaram section (385Km).

The work includes construction of three bridges on an engineering, procurement, and construction (EPC) mode on Mahanadi, Kathjori and Kuakhai rivers.

The company has to execute the said order within a period of three years, and the total size of order is pegged at ₹967 crore including goods and services tax (GST).

In February, RVNL won two contracts worth ₹1,978 crore and ₹270 crore. ₹270 crore order was for the design, supply, erection, testing and commissioning of 220/132/55 KV traction substation, sectioning post (SPs) and sub sectioning post (SSPs) in 2 x 25 KV traction system (scott connected transformer) of Daund - Solapur Sections of Central Railway, to meet 3000 MT loading target on EPC mode.”

Another order worth ₹1,978 crore was awarded to RVNL by NMDC for construction of residential towers at iron ore Deposit-5 at Bacheli, Chhattisgarh. The order is worth ₹796.80 crore.

Meanwhile, RVNL shares were witnessing heavier than usual trading activity as trading volume spiked by three times to 2.91 crore shares compared with an average trading volume of 1.01 crore shares.

On the BSE, as many as 12.25 lakh shares changed hands on the BSE compared with an average of 6.25 lakh shares traded daily in the past two weeks.

As of 11:02 am, RVNL shares traded 3.88% higher at ₹305, outperforming the NIFTY Largemidcap 250 index which was up 0.56%.