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.
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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.
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