Shares of Oriental Rail Infrastructure jumped back in the green on Monday halting their three-straight session losing streak.
What Happened: Shares of the railway company are upbeat today as its subsidiary Oriental Foundry Private clinched a significant contract for the manufacture and supply of BOXNHL wagons and brake vans from THDC India Limited, a Central Public Sector Undertaking (PSU) under the ownership of National Thermal Power Corporation Limited (NTPC), Ministry of Power, and the Indian Railways.
The contract entails the manufacture and supply of 122 BOXNHL Wagons and two brake vans, with a total worth of ₹55.77 crore.
Under the terms of the contract, approximately 90% of the contract price, excluding GST, for each individual rake will be disbursed upon receipt of the rake at the designated site. These payments will be made progressively and pro rata, subject to a joint inspection by the owner and contractor, certifying that the rakes have been delivered in good condition as per the contract specifications.
The remaining 10% of the contract price, excluding GST, for each individual rake, will be paid as per progressive pro rata payment upon the successful commissioning of each rake.
Last month, the company had bagged a similar order from Indian Railways. The order worth around ₹500 crore was for the manufacture and supply of 1,200 BOXNS Wagons.
Price Action: Shares of Oriental Rail Infrastructure were up 3.09% to trade at ₹253.50 in the early hours of trading on Monday. The stock jumped 4% to hit an intraday high of ₹255.70 earlier in the day.
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