 "Patel Engineering stock rises 6% after inking MoU with Rail Vikas Nigam")
Patel Engineering stock gains: Shares of Patel Engineering were buzzing in trade on Friday, August 30, 2024. The shares rose as much as 6.15 per cent to hit an intraday high of Rs 56.94 apiece.
The rise in Patel Engineering share price came after the company said that it has signed a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL), a state-owned railway company.
“The MoU marks the beginning of a strategic partnership aimed at jointly executing projects in the field of hydro and other infrastructure projects both within India and internationally,” Patel Engineering said in a statement.
The agreement outlines a framework for collaboration between the Company and RVNL to leverage each other’s strengths and capabilities in pursuing hydro and other infrastructure projects, Patel Engineering said. Under this deal, both companies will explore opportunities to work together in various capacities, it added.
Key highlights of the deal include joint project execution, where the Company and RVNL will collaborate on selected hydro and infrastructure projects, combining the Company’s extensive infrastructure experience with RVNL’s rail and transport expertise.
The MoU also provides for flexible collaboration models, allowing the parties to participate in tenders and project bids either together or separately, with a unified approach when collaborating.
Additionally, the agreement focuses on creating a framework to achieve synergies in hydro and infrastructure domains, reflecting a shared commitment to high standards of project delivery and excellence.
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Established in 1949, Patel Engineering boasts a strong presence in hydropower, irrigation, tunnels and underground works for hydroelectric and dam projects.
The company has a consistent track record in execution of projects in the domestic and international arena. It has completed over 85 dams, 40 hydroelectric projects and more than 300 km of tunnelling for clients which are mostly central PSUs or state government organisations.
The market capitalisation of Patel Engineering is Rs 4,790.15 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE SmallCap category.
At 10:50 AM, shares of Patel Engineering were trading 5.76 per cent higher at Rs 56.73 per share. In comparison, BSE Sensex was trading 0.26 per cent higher at 82,350.86 levels.