RVNL’s share price jumped back in the green on Wednesday morning going up close to 3%.
What Happened: The railway company on Tuesday evening announced receiving the Letter of Acceptance (LOA) received from Southern Railway for a ₹123 crore order. The order is for the major upgradation/redevelopment of Varkala Sivagiri Railway Station in Kerala.
Last month, a joint venture between KRDCL and RVNL emerged as the lowest bidder for this project. RVNL’s share in the joint venture is 49%. In terms of value that comes to around ₹60.44 crore.
The company also announced signing an MoU with REC Limited for financing support of up to ₹35,000 crore for a range of infrastructure projects. This financial assistance is earmarked for projects planned and executed by RVNL over the next five years. The scope of these projects encompasses various sectors, including multi-modal logistics hub projects, rail infrastructure initiatives, road development, port projects, and metro projects that RVNL has ventured into.
Earlier in December, the PSU disclosed that it secured the position of the lowest bidder for a significant project in partnership with URC Construction Pvt Ltd under the Madhya Pradesh Metro Rail Corporation. The project, valued at ₹543 crore, encompasses the “part design and construction of elevated viaduct, five elevated metro rail stations, and ramp” for the Indore Metro Rail Project.
Price Action: RVNL’s share price was up 2.16% to trade at ₹184.70 as the markets opened on Wednesday.
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