Shares of Rail Vikas Nigam Limited surged 4.1 percent on Wednesday, June 21, as the company announced the acquisition of three significant orders valued at ₹11,256 crore from Chennai Metro Rail Ltd (CMRL) for the construction of underground stations in the phase-II project.
During Wednesday’s trade, the stock opened at a price of Rs. 127 per share against the previous close of Rs. 122.70 per share and grew further during the early trading session to touch an intraday high of Rs. 127.75.
It was trading at ₹124.45 apiece, up by 1.43 percent, at 11:05 a.m. on the NSE.
The stock touched a 52-week high of Rs. 144.40 on May 08, 2023, and a 52-week low of Rs. 29.05 on June 21, 2022, indicating that at the current level, the stock is trading over 328 percent above its 52-week low and 13.8 percent below its 52-week high.
The stock has grown almost 78 percent in the last six months. Moreover, in the last one year, it has yielded a return of nearly 314 percent. In the past five years, it has gained over 530 percent.
The first contract involves building five underground stations, including KMC (Kilpauk), Sterling Road Jn, Nungambakkam, Gemini (Anna Flyover), Thousand Lights, and Thousand Lights Cross Over Box, along with diaphragm wall works for two underground stations at Royapettah Government Hospital (Royapettah) and Chetpet Metro. This contract is valued at ₹1,730 crore and has a timeline of 1,725 days.
The second contract focuses on constructing four underground stations at Dr. Radhakrishnan Salai, Thirumayilai, Mandaveli, and Adyar Junction. It also includes two cross-passage shafts, one emergency escape shaft, and other associated works for Greenways Road Metro. This contract is worth ₹1,461 crore and has a timeline of 1,725 days.
Lastly, the third contract pertains to the construction of three underground stations at Adyar Depot, Indira Nagar, and Taramani Road Junction (Taramani). It also involves the construction of a ramp and other related works for Thiruvanmiyur Metro. The contract is valued at ₹8,065 crore and has a timeline of 1,630 days.
In other news, RVNL has refuted the report of a fallout with Russian Transmashholding (TMH) and confirmed that its joint venture remains intact. The company stated that the bank guarantee will be deposited on time, dispelling any concerns about the partnership.
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.
