RVNL surges 10% on bagging Rs 837 crore order from Eastern Railway

As per the deal, RVNL will carry out earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, RUB, ROB, etc work between Kalipahari to Pradhankhuta

Rail Vikas Nigam Ltd (RVNL) shares gained 10 per cent in Monday's trade and logged an intraday high of Rs 462.75 per share on BSE. The stock rose after the company received a Rs 837 crore project from Eastern Railway.

 

Around 9:23 AM, RVNL's share price was up 8.65 percent at Rs 456.75 per share on BSE. In comparison, the BSE Sensex was up 1.51 per cent at 80,310.70. The market capitalisation of the company stood at Rs 95,368.82 crore. The 52-week high of the company was at Rs 647 per share and the 52-week low was at Rs 162.1 per share.

 

 

"It is hereby informed that M/s RVNL- SCPL (JV) has received a letter of acceptance from Eastern Railway," the filing read.

 

As per the deal, RVNL will carry out earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, RUB, ROB, retaining wall, level crossing, side drain, catch water drain work between Kalipahari to Pradhankhuta in connection with construction of multi-tracking Railway BG line.

 

BG line refers to a broad-gauge railway line which is a railway track with a distance between the tracks that is wider than the standard gauge.

 

Meanwhile, BSE and the National Stock Exchange (NSE) have levied a fine on RVNL of Rs 5,42,800 for non-compliance of regulation.

 

As per the filing, half of the company's board was not independent including women Independent Director for the quarter ended September 30, 2024.

 

In a clarification note, RVNL has cited that the company is a government entity as per provisions of the section 2(45) of the Companies Act, 2013.  

 

"All directors in RVNL are appointed by the government of India through its Administrative Ministry, Ministry of Railways (MoR) and RVNL has no role to play in the appointment of any Director," the filing read.

 

Rail Vikas Nigam Limited (RVNL) is a public sector undertaking under the Ministry of Railways, established in 2003 to spearhead the development of railway infrastructure in India. Its primary focus is on the planning, construction, and modernization of railway lines, stations, electrification, signaling, and other related infrastructure projects. RVNL plays a key role in upgrading and expanding India's railway network, enhancing connectivity, and improving operational efficiency. 

 

The company undertakes a wide range of projects, including the construction of new tracks, gauge conversions, doubling of lines, and development of passenger amenities. As a government-owned corporation, RVNL contributes significantly to the growth of the Indian Railways, ensuring the implementation of large-scale infrastructure initiatives across the country.

 

In the past one year, RVNL shares have gained 152 per cent against Sensex's rise of 20 per cent.