Titagarh Rail Systems gains on securing LoA from NCC

Titagarh Rail Systems advanced 1.86% to Rs 852.65 after the company secured a letter of acceptance (LoA) worth Rs 1,598.55 crore from NCC for the Mumbai Metro Rail project under the Mumbai Metropolitan Region Development Authority (MMRDA).

Shares of NCC rose 1.10% to currently trade at Rs 216.25 on the BSE.

In a regulatory filing, the company stated that the contract is for the design, manufacturing, supply, installation, integration, testing, and commissioning of rolling stock for Mumbai Metro Line 6, which runs from Swamy Samarth Nagar to Vikhroli.

The scope of the project also includes 5 years of comprehensive maintenance, following a two-year defect liability maintenance period, further highlighting Titagarhs capabilities in providing end-to-end metro rail solutions.

The total execution period includes a Design-Build Period of 104 weeks (2 years), followed by a Defect Liability Maintenance Period (DLMP) of 2 years, and an additional 5 years of comprehensive maintenance thereafter.

The broad commercial value of the order is approximately Rs 1,598.55 crore.

The company clarified that the order does not fall under related party transactions, and none of the promoters, promoter group, or group companies have any interest in NCC, the entity that awarded the contract.

Titagarh Rail Systems (formerly known as Titagarh Wagons) is mainly engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipments & bridges, ships, etc. The company caters to both domestic and export market.

NCC is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges, flyovers, water supply and environment projects, mining, power transmission lines, irrigation and hydrothermal power projects, etc.

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