RVNL gets Rs 202-crore LoA from South Eastern Railway; shares gain over 4%

Rail Vikas Nigam Ltd will complete the project in an 18-month period

Rail Vikas Nigam share price rose 4.4 per cent in Friday's (August 30) intraday trade. The stock registered an intraday high of Rs 605 per share on the BSE after the PSU railway company received a letter of acceptance (LoA) from Ser HQ Electrical/South Eastern Railway.

"Rail Vikas Nigam Limited has received a Letter of Acceptance from SER HQ- ELECTRICAL/SOUTH EASTERN RAILWAY," RVNL's stock exchange filing read.

With this, RVNL has been awarded the project to design, supply, erect, test, and commission 132 KV Traction Substation, Sectioning posts (SPs), and Sub sectioning posts (SSPs) in the 2x25KV System on the Kharagpur division of South Eastern Railway to meet 3000MT.

The size of the order, as per the stock exchange filing, is around Rs 202.86 crore. It is expected to be completed in 18 months.

At around 1:07 PM, RVNL share price was up 4.12 per cent or Rs 23.85 at Rs 603.2 per share. The market capitalisation of the company stood at approximately Rs 1.26 trillion.

Meanwhile, on August 27, RVNL emerged as the lowest bidder (L1) from Southern Railway for the provision of MSDAC with existing DCTC at stations (To serve as Dual detection).

The transaction was worth over Rs 111 crore and is said to be completed in 18 months.

Further, on August 28, RVNL signed another MoU with Patel Engineering to cooperate and create an enabling framework for achieving synergies in the areas concerning Hydro and other infrastructure Projects, and when opportunities arise in India and Overseas.

At the end of the June quarter, RVNL's order book stood at Rs 83,221 crore.

RVNL share price history

In the past one year, shares of RVNL have given a multibagger return of 353 per cent as against Sensex's rise of 26.2 per cent.