RVNL Spurts 10% on Bagging Multiple Orders Worth Rs 390 Cr

Shares of Rail Vikas Nigam Limited surged 10% to an intraday high of Rs 598 on the BSE on Wednesday, July 10, after the company announced that it had secured multiple orders worth Rs 390.21 crore.

Key Takeaways from Rail Vikas Nigam’s Acquisitions

• RVNL surged 10% to an intraday high of Rs 598 after the company announced that it had secured multiple orders worth Rs 390.21 crore.
• The company has received a Letter of Acceptance (LoA) from Maharashtra Metro Rail Corporation (Nagpur Metro) worth Rs 187.34 crore.
• On July 9, RVNL and TATWEER Middle East and Africa LLC signed a Memorandum of Understanding (MoU).
• RVNL has been declared the lowest bidder (L1) of a 132 KV traction substation, sectioning posts (SSPs), on the South Eastern Railway's Kharagpur division

The state-owned railway company has received a Letter of Acceptance (LoA) from Maharashtra Metro Rail Corporation (Nagpur Metro) for the building of six elevated metro stations in NMRP Phase 2 Reach 2B, according to the corporation. The project costs Rs 187.34 crore and comprises the building of six stations: Cantonment Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club, and Kanhan River Metro Station. This domestic project is projected to take 30 months to complete, according to the state-owned railway company's exchange report.

In another development on July 9, RVNL and TATWEER Middle East and Africa LLC signed a Memorandum of Understanding (MoU). This Memorandum of Understanding aims to create cooperative capacities in the design and implementation of various rail projects in the MENA region and European countries by using RVNL's railway experience. The company added that it will provide professional engineering services, digital transformation, and smart city creation, execution, and commissioning. 

In a separate update on July 9, the state-owned business has been declared the lowest bidder (L1) for the design, supply, installation, testing, and commissioning of a 132 KV traction substation, sectioning posts (SSPs), on the South Eastern Railway's Kharagpur division, according to a separate update released by RVNL on July 9. The estimated cost of this residential project is Rs 202.87 crore, and it should be completed within 18 months. 

About Rail Vikas Nigam Limited

Rail Vikas Nigam Limited was incorporated as a PSU in 2003 to bridge the infrastructure deficit on Indian Railways. The company was incorporated as per the Companies Act 1956 with the twin objectives of implementing projects relating to the creation and augmentation of rail infrastructure capacity on a fast-track basis and raising extra budgetary resources for SPV projects.

The company's operations began in 2005 with the appointment of the Board of Directors. RVNL obtained Miniratna status in September 2013. It has received the "Excellent" rating from the Department of Public Enterprises for the past nine years running. RVNL has also been ranked first among railway PSEs for four of the previous five years.

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