RVNL stock up 7% on winning ₹271 crore metro project

Rail Vikas Nigam Limited (RVNL) shares gained significant attention on Thursday, October 17th, 2024. The stock soared by 7.27% to reach an intraday high of ₹514.40. The surge follows RVNL's announcement of securing a major project, boosting interest in share market investment.

RVNL emerges as the lowest bidder

RVNL revealed in an exchange filing that it has been named the lowest bidder (L-1) for a ₹270.78 crore project awarded by Maharashtra Metro Rail Corporation Limited. The project involves the construction of elevated metro stations as part of Nagpur Metro Rail Project (NMRP) Phase-2.

Key project details

The project requires RVNL to construct 10 elevated metro stations across two sections:

• Reach 3A: Seven stations, including Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna.
• Reach 4A: Three stations comprising Pardi, Kapsi Khurd, and Transport Nagar.

The project's total value is precisely ₹270,00,78,283.48, and the completion timeline is set at 30 months.

RVNL's role in the rail industry

Established in 2003, RVNL is headquartered in New Delhi and specialises in rail infrastructure. The company handles various railway projects, such as new lines, gauge conversion, electrification, and bridge construction. In addition to metro projects, RVNL is also involved in cable-stayed bridges and institutional buildings.

The company supports its large-scale operations by mobilising financial resources and catering to clients, including Indian Railways, state ministries, and public sector undertakings.

Market performance

As of 9:53 AM on Thursday, RVNL's shares were trading 4.71% higher at ₹502.10. Meanwhile, the broader market was less optimistic, with the BSE Sensex trading 0.36% lower at 81,204.68.

Key takeaways

1. RVNL shares climbed by 7.27%, a rise attributed to securing a metro project worth ₹270.78 crore.
2. The company will build 10 elevated metro stations across Nagpur as part of the NMRP Phase-2.
3. RVNL's strong presence in share market investment is reinforced by its role as a leading rail infrastructure player.
4. The company's market capitalisation stands at ₹1,04,939.06 crore, placing it among the BSE200 firms.

The latest project win is expected to solidify RVNL's reputation further and attract more attention from those interested in share market investment.