RVNL‘s share price which was mostly muted on Friday, shot up sharply after the company announced winning an arbitration award.
What Happened: The railway major on Friday disclosed that its subsidiary, Krishnapatnam Railway Company Limited (KRCL), has won an arbitration award amounting to ₹584.22 crores against the Ministry of Railways.
The arbitration application was lodged to settle a dispute between KRCL and the Ministry of Railways. KRCL, a special purpose vehicle of RVNL. RVNL owns a 49.76% share of the company.
![](https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19032326/newplot-92.jpeg)
See Also: India Emerges As Second Largest Paid User Additions Market For Netflix
On Thursday, an exchange filing showed that Life Insurance Corporation and foreign institutional investors (FIIs) have raised stakes in RVNL during the June quarter. As per the latest data, LIC owns around 13.42 crore shares or a 6.44% stake in the company as of June 30. Foreign portfolio investors also increased their stake from 2.32% to 3.13% in the same period.
This victory follows a period of downturn for railway stocks, including RVNL, which saw a significant dip on the previous day. Market analysts attributed this correction to profit booking, with no visible trigger for the fall. Despite this, railway stocks have seen a stellar year, with RVNL shares soaring by 390% in the past year.
Price Action: RVNL’s share price was up 2.15% to trade at ₹598.75 on Friday afternoon.
Read Next: Paytms Net Loss Soars To 839 Cr Shares Recover As Street Expected Worse
Engineered by Benzinga Neuro, Edited by Utkarsh Roshan
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.