Shares of this railway company rally upon securing prestigious order for Vande Bharat trainsets
The order includes the upgradation of the government manufacturing units & trainset depots in a joint venture.
The shares of Rail Vikas Nigam Ltd are buzzing on the bourses today. As of 11.10 am, the shares of the company are trading higher by 11.24%. Today, the company reported a spurt in trading volume by more than 3.44 times. Owing to this, the stock is one of the top gainers on BSE from Group A.
Meanwhile, the frontline index S&P BSE Sensex is down by 0.52%.
Why the rally?
The rally in the share price of Rail Vikas Nigam has come on the back of an important announcement made yesterday. As per the exchange filing, Rail Vikas Nigam Limited has emerged as the lowest bidder (L1) for manufacturing cum maintenance of Vande Bharat Trainsets including the upgradation of the government manufacturing units & trainset depots in a joint venture. The total quantity is 200 Trainsets and the cost per set is Rs 120 crore.
The joint venture partners and their respective holdings in the JV are-
1. M/s. Joint Stock Company Metrowagonmash- 70%
2. M/s. Joint Stock Company Locomotive Electronic System- 5%
3. Rail Vikas Nigam Limited- 25%
Share price movements
Today, the scrip opened at Rs 61.90, which is also the day’s low. Further, the scrip logged an intra-day high of Rs 66.50. So far 32,16,581 shares have been traded on the bourses. The stock has a 52-week high & low of Rs 84.15 and Rs 29 respectively on BSE.
Rail Vikas Nigam Limited (RVNL) was incorporated as a 100% owned PSU of the Ministry of Railways (MoR) on 24-1-2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to the creation and augmentation of the capacity of rail infrastructure on a fast-track basis.
RVNL functions as an extended arm of the Ministry of Railways working for & on behalf of MoR. It is empowered to act as an Umbrella SPV to undertake project development, resource mobilization etc. directly or by creating project-specific SPVs or by any other financing structure found suitable.
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