RVNL Share Price Increases by 3% Following NHAI Project Win

Market Performance

Rail Vikas Nigam Ltd (RVNL) saw its share price rise over 3% in early trading on Wednesday after announcing the acquisition of a a recently awarded contract from the National Highways Authority of India

On the BSE, RVNL shares opened at ₹341.95, indicating a rise from the previous closing price of ₹330.80. During the morning session, the stock fluctuated between ₹334.80 and ₹341.95.

NHAI Project Details

RVNL revealed after market hours on Tuesday that it was declared the Lowest Bidder (L1) for a road infrastructure project awarded by NHAI. The project involves the construction of a six lane access-controlled road connecting Visakhapatnam Port Road from Sabbavaram bypass of the Anakapalli–Anandapuram corridor to Sheelanagar junction of NH 516C in Andhra Pradesh.

The total contract value for the project is ₹554.64 crore, excluding Goods and Services Tax (GST). The project is being executed under the Hybrid Annuity Mode (HAM).

Previous Project Acquisition

RVNL has been actively securing new contracts. On March 6, the company announced that it had received a Letter of Acceptance from South Western Railway for a railway electrification project. The project involves Engineering, Procurement, and Construction for Overhead Equipment (OHE) and Power Supply Installation (PSI) systems.

Financials of the Project:

• Project Cost: ₹156.35 crore (including applicable taxes).
• Scope of Work: Design, supply, erection, testing, and commissioning 2X25 KV OHE & PSI systems, including associated electrical and telecommunication work.

Summary

RVNL's share price saw a positive movement following its announcement of securing a ₹554.64 crore contract from NHAI. The company has been actively acquiring large-scale infrastructure projects, strengthening its position in the sector. The recent contract wins highlight RVNL's growing project portfolio and its involvement in railway and highway development initiatives.