RVNL shares jump 4% on receiving Rs 295-cr LoA from South Central Railway

Shares of Rail Vikas Nigam (RVNL) jumped 3.68 per cent to Rs 431.55 on the National Stock Exchange (NSE) during early trade on Tuesday. The upward move in the RVNL stock price follows the company's announcement of receiving a ‘Letter of Acceptance’ from South Central Railway of worth Rs 294.94 crore.  

In an exchange filing, RVNL stated that it has received a Letter of Acceptance from South Central Railway for the “Engineering Procurement Construction (EPC) Contract of Doubling of Track between Navipet Station (Excl) from Km 446.900 to Indalvai Station (Incl) Km 482.900 (33.70 km), {Excluding Nizamabad Yard from Km 458.825 to 461.125 (i.e., 2.3 Km)} including Electrification & Signaling works in South Central Railway in connection with the Mudkhed-Medchal Doubling Project in the State of Telangana.”

 

 

Incorporated in 2003, Rail Vikas Nigam (RVNL) is a Government of India entity that develops rail infrastructure. RVNL implements projects assigned by the Ministry of Railways, including doubling, gauge conversion, new lines, electrification, bridges, workshops, and production units. The company undertakes project development, financing, and implementation on a turnkey basis, serving clients such as Indian Railways, central and state government ministries, and public sector undertakings. As of November 19, 2024, RVNL has a market capitalisation of Rs 89,697.56 crore on the NSE.

 

RVNL shares have a 52-week range of Rs 647-162.10 on the NSE. 

 

Shares of the state-owned company have yielded a return of 135.91 per cent year-to-date.

 

At around 11:02 AM, RVNL shares were trading at Rs 430.50, up 3.44 per cent from their previous close of Rs 416.20 on the NSE. A combined total of nearly 2.24 million shares of RVNL, worth approximately Rs 95.97 crore, have exchanged hands on the NSE and BSE.

 

Meanwhile, benchmark equity indices, BSE Sensex and NSE Nifty50, were trading higher on Tuesday. The Sensex was trading at 78,240.63 levels, up 901.62 points or 1.17 per cent, while the Nifty50 traded 269.15 points or 1.15 per cent higher at 23,722.95 levels.