Why RVNL Share Price Is Surging 4% Today

RVNL‘s share price jumped back in the green on Tuesday as the company announced receiving a Letter of Acceptance
from Southern Railway for an order.

What Happened: The company on Tuesday evening informed the exchanges that it had received an LOA from Southern Railway for "provision of Automatic Block Signaling system in Jolarpettai Junction to Erode Junction of Salem Division in Southern Railway."

The order is scheduled to be completed in 900 days and is worth around ₹239 crore. The company was declared the lowest bidder for this order in April. Last week, the company announced that it has emerged as the lowest bidder for an order from South East Central Railway.

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The order is for the "provision of Auto Signalling with Electronic Interlocking (OFC Based) between Champa-Saragaon-Baraduar-Sakti section with alteration in existing Electronic Interlocking & Supply, Installation, Testing, Commissioning of new Electronic Interlocking, MSDAC & IPS etc., execution of all indoor & outdoor works & construction and Electrification of the huts etc. in Champa-Sakti Section of Bilaspur Division of S.E.C. Railway."

The order is set to be completed in 15 months and is worth around ₹38.10 crore. In the past two months, the railway major has bagged orders worth over ₹1,000 crore.

Price Action: RVNL’s share price went up around 4.20% to trade at ₹266.50 shortly after market open on Tuesday.

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