Rail Vikas Nigam Limited (RVNL) shares surged 10 percent to hit a new 52-week high on Tuesday, May 02, following the announcement that the RVNL-SCC joint venture had emerged as the lowest bidder for a project worth ₹2,249 crore.
The bid was for a project offered by the Additional Chief Engineer, Water Resources Zone, UHLC, Udipar.
During Tuesday’s trade, the stock opened at a price of Rs. 112.50 per share against the previous close of Rs. 107.55 per share and grew further during the early trading session to touch a new high of Rs. 118.30.
It was trading at ₹117.15 apiece, up by 8.93 percent, at 11:55 a.m. on the NSE.
The stock touched a 52-week low of Rs. 29.05 on June 21, 2022, indicating that at the current price, it is trading over 300 percent above that level.
The stock has grown almost 56 percent in the last one month. Moreover, in the past six months, it has yielded a return of nearly 194 percent.
In the past one year, it has given returns of over 250 percent to its shareholders. Meanwhile, it has advanced 71% in 2023 YTD, with positive returns in 3 of the 4 months of this calendar year.
The nature of the contract calls for the planning, design, and construction of the main canal and structures, as well as the associated distribution system, to provide irrigation facilities through a piped irrigation network for the Mahi Bajaj Sagar Project, Banswara (Rajasthan), upper high-level canal.
Additionally, RVNL was given Navratna status by the Department of Public Enterprises on Monday. Navratna corporations are state-controlled businesses that are eligible to accept investments up to ₹1,000 crore in value.
Previously, Chennai Metro Rail Limited (CMRL) signed a contract with RVNL for the construction of a new 10km elevated line over the OMR IT corridor. The line will run from Sholinganallur to Siruseri Sipcot and will include nine stations.
In other news, a joint venture of Russian firm Transmashholding (TMH) and Rail Vikas Nigam Limited emerged as the lowest bidder for the manufacture and maintenance of 200 lightweight Vande Bharat trains.
The consortium made a bid of around ₹58,000 crore last month, with the cost of manufacturing one train set estimated at ₹120 crore.
Rail Vikas Nigam Limited (RVNL) is a special purpose vehicle (SPV) engaged in undertaking development projects. The company executes all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, and institutional buildings.