Strong Rise in RVNL Share Price
Shares of Rail Vikas Nigam Limited (RVNL) experienced a notable increase of over 4 percent on Wednesday, November 6. This surge in the stock price can be attributed to the announcement that an RVNL-led consortium has secured a significant project worth approximately Rs 5,000 crore from Bharat Sanchar Nigam Limited (BSNL). Investors responded enthusiastically, leading to heavy buying of RVNL shares, which ultimately closed at Rs 469.75, marking a 4.18 percent rise on the NSE.
Major Project Win for RVNL
The consortium, which RVNL leads, emerged as the lowest bidder for a crucial project involving the construction, upgrading, operation, and maintenance of the middle mile network for BSNL’s Bharat Net project. This ambitious initiative will be executed under a Design, Build, Operate, and Maintain (DBOM) model, with other partners including HFCL Limited and Aerial Telecom Solutions Pvt. Ltd. The total contract value is around Rs 5,008.20 crore, with a construction timeline of three years and a maintenance period extending to ten years. However, the exact stakes of each company in the consortium have yet to be finalized.
New Developments in Bengaluru
In addition to the BSNL project, RVNL is also making strides in the railway sector with a significant project in Bengaluru. The company has successfully won the bid for the Bengaluru Suburban Rail Project under Package C4A, with a proposal of Rs 613 crore. This project involves constructing nine stations, including one elevated station, along with eight corridors. The stations will be located in areas such as Heelalije, Singena Agrahara, and Bellandur. RVNL will hold a 51 percent stake in this joint venture, and the project is expected to be completed within two years. Despite facing a drop in net profit and operational revenue in the June quarter, RVNL’s shares have skyrocketed by about 158 percent this year, delivering impressive returns of around 200 percent to its investors over the past year.
SHOTRS COVERAGE.
RVNL Share Price Surge
Shares of Rail Vikas Nigam Limited (RVNL) rose over 4% on November 6, closing at Rs 469.75 following the announcement of a Rs 5,000 crore project win from BSNL. The RVNL-led consortium will construct the Bharat Net project, using a Design, Build, Operate and Maintain model. Additionally, RVNL secured a Rs 613 crore contract for the Bengaluru Suburban Rail Project. Despite a 34.7% drop in quarterly net profit, RVNL’s shares have surged approximately 158% this year.
