Rail Vikas Nigam share price rises 13% post ₹554 crore order update

Stock Market Today: Rail Vikas Nigam Ltd (RVNL) share price remain in focus on Wednesday and gained 13% in morning trades as the company announced having received Letter of Acceptance received from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE). The broad consideration for the order is ₹554.46 crore

RVNL share price movement

The Rail Vikas Nigam share price opened at ₹332.35 on the BSE on Wednesday, slightly lower than the previous days closing price of ₹333.10. The RVNL share price thereafter gained to intraday highs of ₹376.55 , which meant gains of more than 13% during the morning trades

RVNL order details

RVNL announced on the exchanges having received a Letter of Acceptance from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) for “Package C4A. This includes construction of Nine Stations of which one is Elevated and 8 are others stations under the Bengaluru Suburban Rail Project" (BSRP). The BSRP Stations include those at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, Kaggadasapura. The work included Civil, Structural, Entry / Exit Structure, Steel FOB, Roof Structures, PEB works Architectural finishes and E&M Works and Detailed Design & Engineering ) with all associated works for Bengaluru Suburban Rail Project" (BSRP).

The time period in which the order is to be executed is 24 months.

The broad consideration or size of the order or the the project cost is ₹554,46,65,625/- (Rupees Five Hundred Fifty Four Crore Forty Six Lakhs Sixty Five Thousand Six Hundred and Twenty Five Only) (Excluding the Goods and Service Tax).

The company specified that RVNL share in the Joint Venture or JV is as follows:

Rail Vikas Nigam ( RVNL )= 51%

Rithwik Projects Pvt. Ltd. (RPPL) = 49%

The order flow for RVNL remain strong and the said order update supported the investor confidence leading to gains in share price of RVNL

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