State-owned Rail Vikas Nigam Ltd (RVNL) has clinched a significant contract worth ₹202.87 crore from the South Eastern Railway. The project, announced on July 9, involves the design, supply, erection, testing, and commissioning of a 132 KV traction substation, sectioning posts (SPs), and sub-sectioning posts (SSPs) in a 2x25KV system along the Kharagpur-Bhadrak section of the Kharagpur division.
RVNL: Lowest Bidder for Major Railway Project
RVNL emerged as the lowest bidder (L1) for this critical project, as confirmed in a filing with the stock exchange. The project aims to enhance the railway’s capacity to handle up to 3000 MT of traffic. It includes the implementation of advanced electrical infrastructure, which is crucial for maintaining and increasing the efficiency of the railway operations on this busy route.
The company stated, “…it is hereby informed that Rail Vikas Nigam Ltd emerges as the Lowest Bidder (L1) from SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY for Design, Supply, Erection, Testing & Commissioning of 132 KV Traction Substation, Sectioning post (SPs), and Sub sectioning post (SSPs) in 2x25KV System on Kharagpur – Bhadrak section of Kharagpur division of South Eastern Railway to meet 3000MT.”
The project is scheduled to be completed within 18 months, ensuring timely improvements to the railway’s infrastructure and operational capabilities.
Significant Share Transaction
In related news, a substantial block deal took place involving Rail Vikas Nigam’s stock. Approximately 1.4 crore shares, valued at ₹827 crore, were exchanged. This transaction represents about 0.7% of the company’s total equity, with shares traded at an average price of ₹585 each. This large-scale share exchange highlights investor confidence and interest in the railway PSU’s future prospects.
Government Stake and Market Milestone
As of the March quarter, the Union government holds a 72.84% stake in Rail Vikas Nigam. The shareholding pattern for the June quarter is yet to be updated. This significant government ownership underscores the strategic importance of RVNL in the country’s railway infrastructure development.
Furthermore, RVNL recently crossed the ₹1 lakh crore mark in market capitalisation on July 5, becoming only the second railway stock, after IRFC, to reach this milestone. This achievement reflects the company’s robust market performance and growing investor confidence. Currently, RVNL’s market capitalisation stands at ₹1.13 lakh crore.
Stock Market Performance
Despite these positive developments, shares of Rail Vikas Nigam Ltd closed at ₹543.15, down by ₹22.65 or 4%, on the BSE. This decline comes in the context of broader market movements and specific trading activities, such as the recent block deal.
The company’s strategic projects and market achievements indicate a strong trajectory of growth and development. RVNL’s successful bid for the South Eastern Railway project and its impressive market capitalisation milestone highlight its pivotal role in enhancing India’s railway infrastructure.
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Source: Cnbctv
News Desk
