Rail Vikas Nigam Ltd. (RVNL) saw a significant jump in its share price after securing the position of the lowest bidder (L1) for three orders, including one in a joint venture with Salasar Techno Engineering Ltd.
What Happened: The company has secured a contract valued at ₹148.26 crore for the upgrade of the electric traction system from a 1×25 KV to a 2×25 KV traction system on the Kharagpur-Bhadrak section of the South Eastern Railway. This upgrade aims to support a loading target of 3,000 MT and requires completion within 18 months.
RVNL also won a ₹95.95 crore contract from the Northeast Frontier Railway for the engineering, procurement, and construction of electrification works on the Araria – Thakurganj new line section, which it must complete within the next 240 days.
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Moreover, in partnership with Salasar Techno Engineering, RVNL secured a bid for a $7.15 million project from the Energy Development Corporation Ltd. This project involves the design, supply, and installation of 45.8 km of 110Kv double circuit Rukarara-Huye-Gisagara Transmission Lines, with RVNL holding a 49% stake in the joint venture.
Despite being one of the top performers of the financial year 2024 with a 276% gain, RVNL’s stock has experienced a 27% correction from its recent high of ₹345.
Price Action: Rail Vikas Nigam Ltd. shares were trading 3.6% higher at ₹262.00 on Monday morning.
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