Railtel shares jump 6% on winning ₹16.8-cr order from Defence Ministry

RailTel Corporation of India shares jumped 6.2 per cent in trade on BSE, logging an intraday high at ₹316 per share. The northward movement in the stock came after the company received the work order from the Ministry of Defence for laying optical fiber cable (OFC).

 

Around 9:53 AM, Railtel share price was up 4.89 per cent at ₹311.9 per share on BSE. In comparison, the BSE Sensex was up 0.24 per cent at 76,532.46. The market capitalisation of the company stood at Rs 10,013.28 crore. The 52-week high of the stock was at ₹618 per share and the 52-week low was at ₹265.3 per share.

 

 

Under the contract, Railtel will lay Optical Fiber Cable (OFC) for Ministry Of Defence. The order is worth around ₹16.89 crore. 

 

"This is to inform that RailTel Corporation of India Ltd. (the company) has received the work order from Ministry Of Defence for OFC Laying Work amounting to ₹16,89,38,002 (including tax)," the filling read. 

 

Recently, Railtel bagged an order worth ₹288 crore from East Central Railway. 

 

ALSO READ | RailTel share rises 3% on Rs 288 crore-order win from East Central Railway 

Under the terms of the order, RailTel will work towards the provision of Kavach (indigenous Train Collision Avoidance System) on a low density railway track in 502.2 RKm of East Central Railway.

 

RailTel Corporation of India, founded in 2000 as a public sector undertaking under the Ministry of Railways, plays a crucial role in modernizing India’s railway communication systems and providing broadband services across the country. 

 

Its primary services include broadband connectivity to urban and rural areas, offering mission-critical communication solutions like video surveillance and e-office services, and providing Wi-Fi and on-demand content at major railway stations. RailTel also focuses on network modernisation to improve train operations and administration, ensuring the smooth functioning of the railway system.  ALSO READ | Ola Electric shares surge 5% after reassuring investors on 'strong' sales

 

In addition to its core functions, RailTel has been instrumental in various large-scale government projects such as Bharat Net, the National Knowledge Network, and optical fiber connectivity initiatives in the North East. RailTel was formed through the Railway Budget of 2000, with the goal of leveraging the existing telecom assets and the Right of Way (ROW) of Indian Railways to contribute to the National Telecom Policy of 1999. 

 

In the past one year, Railtel shares have lost 17 per cent against Sensex's rise of 5 per cent.