 "RVNL signs MoU with Israel-based United Construction; stock 12% off lows")
RVNL in focus: Shares of Rail Vikas Nigam Ltd (RVNL) has moved higher by 9 per cent to Rs 637.80 on the BSE in Friday’s intra-day trade.
The uptick in share price came after the company announced that it has signed Memorandum of Understanding (MoU) with United Construction Limited, Israel. The RVNL stock has bounced back 12 per cent from its intra-day low of Rs 569.80 on the BSE.
The uptick in share price came after the company announced that it has signed Memorandum of Understanding (MoU) with United Construction Limited, Israel. The RVNL stock has bounced back 12 per cent from its intra-day low of Rs 569.80 on the BSE.
RVNL, in exchange filing, said the memorandum of understanding (MoU) is to co-operate with each other to get projects in the field of Railways, Mass Rapid Transit System (MRTS), Tunnels, Roads (Highways & Expressways), Bridges, Building Works, Airports, Ports, Irrigation, Power Transmission and Distribution Sector, Solar Sector, Wind Sector in Israel.
Meanwhile, in a separate exchange filing, RVNL informed that the Hon'ble tribunal has passed an award of Rs 584.22 crore in favour of its joint venture company i.e. Krishnapatnam Railway Company Limited (KRCL).
“In reference to the arbitration application no. 33/2019 to settle the dispute between KRCL (a JV/SPVof RVNL with RVNL's share of 49.76 per cent) and Ministry of Railway (MoR), it has been informed by KRCL that the Hon'ble tribunal has passed an award of Rs 584.22 crore in favour of the claimant (KRCL),” RVNL said.
RVNL, its subsidiary and joint ventures are engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling (including 3rd/4th lines), gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway. The company has formed Eleven Special Purpose Vehicles (SPVs).
RVNL has successfully constructed major workshops for Indian Railways in fast track mode. With RVNL’s growth as a major provider of a variety of rail infrastructure, there is an opportunity of securing rail infrastructure projects overseas.
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Meanwhile, RVNL on July 10 informed that it has signed MoU with IMS Consultancy Private Limited (IMS) for providing technical and advisory services to RVNL for projects in the field of Railways, MRTS, Tunnels, Roads (Highways & Expressways), Bridges, Building Works, Airports, Ports, Irrigation, Power Transmission and Distribution sector, Solar sector, Wind Sector, Hydro Power Sector etc. in Nepal.
At 01:50 PM, RVNL was trading 8 per cent higher at Rs 632.20, as compared to 0.54 per cent decline in the BSE Sensex.
The stock had hit a record high of Rs 647 on July 15. Thus far in the calendar year 2024, RVNL’s market price has zoomed nearly 250 per cent, while, in past one year, it skyrocketed 430 per cent. In comparison, BSE Sensex was up 12 per cent and 21 per cent, respectively.
The stock had hit a record high of Rs 647 on July 15. Thus far in the calendar year 2024, RVNL’s market price has zoomed nearly 250 per cent, while, in past one year, it skyrocketed 430 per cent. In comparison, BSE Sensex was up 12 per cent and 21 per cent, respectively.