Market Performance
On Wednesday, Rail Vikas Nigam Limited (RVNL) witnessed a significant uptick in its share price, climbing 13% during morning trading sessions. The surge follows the company's announcement of securing a substantial contract valued at ₹554.46 crore from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE).
RVNL Share Price Movement
The trading day commenced with RVNL shares opening at ₹332.35 on the Bombay Stock Exchange (BSE), marginally below the previous close ₹333.10.
Details of the ₹554 Crore Contract
RVNL has been awarded a Letter of Acceptance from K-RIDE for "Package C4A," which encompasses the construction of nine stations under the Bengaluru Suburban Rail Project (BSRP). This project includes one elevated station and eight at-grade stations located at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura.
The scope of work involves civil and structural engineering, entry and exit structures, steel foot overbridges, roofing, pre-engineered building works, architectural finishes, electrical and mechanical installations, and detailed design and engineering. The project is planned to be completed within 24 months.
Joint Venture Composition
The project will be carried out as a joint venture, with RVNL holding a 51% stake and Rithwik Projects Pvt. Ltd. (RPPL) owning the remaining 49%.This collaboration aims to leverage both entities' strengths to ensure the project's successful delivery.
Summary
The recent contract award from K-RIDE has bolstered investor confidence in RVNL, reflected in the 13% surge in its share price. This project enhances RVNL's order book and suggests its pivotal role in advancing India's railway infrastructure.
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