RVNL emerges as lowest bidder for two key projects; stock zooms 5%

RVNL stocks gained momentum following the company's announcement that it had emerged as the lowest bidder in two projects worth arpound Rs 5,608 crore (Rs 5,008 crore and Rs 613 crore respectively)

Shares of state-owned Rail Vikas Nigam (RVNL) gained 4.79 per cent to hit the day's high of Rs 472.50 on the NSE during intraday deals on Wednesday. RVNL stocks gained momentum following the company's announcement that it had emerged as the lowest bidder in two projects worth around Rs 5,608 crore (Rs 5,008 crore and Rs 613 crore respectively).

 

In an exchange filing dated November 5, 2024, RVNL said, "RVNL-HFCL – Aerial Telecom Solutions Consortium emerged as the lowest bidder (L1) from Bharat Sanchar Nigam (BSNL) for the 'Development (Creation, Upgradation, and Operation & Maintenance) of Middle Mile Network of Bharat Net on the Design, Build, Operate, and Maintain (DBOM) Model."

 

In another filing, RVNL announced, "RVNL-RPPL (JV) emerged as the Lowest Bidder (L1) from Rail Infrastructure Development Company (Karnataka) (K-RIDE) for 'Package C4A: Construction of Nine stations, i.e., Elevated (1 No.) and At-Grade (8 Nos.) BSRP Stations of Corridor-4A at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura, including Civil, Structural, Entry/Exit Structure, Steel FOB, Roof Structures, PEB works, Architectural finishes, and E&M Works, and Detailed Design & Engineering (DOC) with all associated works for the Bengaluru Suburban Rail Project (BSRP)."

 

Rail Vikas Nigam (RVNL), incorporated in 2003, is a Government of India entity that develops rail infrastructure. RVNL implements projects assigned by the Ministry of Railways, including doubling, gauge conversion, new lines, electrification, bridges, workshops, and production units. The company undertakes project development, financing, and implementation on a turnkey basis, serving clients such as Indian Railways, central and state government ministries, and public sector undertakings. As of November 6, 2024, RVNL has a market capitalisation of Rs 96,192.40 crore on the NSE.

 

RVNL shares have a 52-week range of Rs 647-154.05 on the NSE.

 

Shares of the state-owned company have yielded a return of 150 per cent year-to-date.

 

At around 10:53 a.m., RVNL shares were trading at Rs 462.70, up 2.62 per cent from their previous close of Rs 450.90 on the NSE. Combined, nearly 0.40 million shares of RVNL, worth around Rs 183.19 crore, have exchanged hands on the NSE and BSE.

 

Meanwhile, benchmark equity indices, BSE Sensex and NSE Nifty50, are trading higher on Wednesday. Sensex was trading at 79,909.43 levels, up 432.80 points or 0.54 percent, while Nifty50 traded 145.35 points or 0.60 per cent higher at 24,358.65 levels.