RVNL share price slumped over 5% at market open on Monday hitting an intraday low of ₹118.
What Happened: The stock that had a pretty impressive start to the year seems to have lost momentum recently. In the past eight sessions, the stock has ended lower on six occasions. The slump today comes as a Moneycontrol report stated that the 36,000-crore railway contract that the company won earlier this year may not go through.
The report suggests that negotiations between Russia’s CJSC Transmashholding (TMH) and Rail Vikas Nigam Limited (RVNL) – the consortium awarded the contract – have ceased and the Indian Railways might have to reconsider issuing a fresh tender for the production and upkeep of 120 Vande Bharat sleeper trains.
Sources told Moneycontol that TMH did not agree to RVNL’s demand of having a larger stake in the joint venture. As per the report, this is why TMH has not deposited the ₹200 crore bank guarantee required to initiate the project.
Price Action: RVNL share price was down 2.65% to trade at ₹121.15 in the early hours of trading on Tuesday.
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