Shares of Rail Vikas Nigam Ltd. (RVNL) dropped nearly 4 percent on Friday despite the company bagging a four-year contract worth Rs 1,088 crore from Haryana Rail Infrastructure Development Corporation Ltd. (HRIDC).
RVNL informed bourses that it had managed to secure a composite contract from the Haryana Rail Infrastructure Development Corporation Ltd. in connection to the development of the New Broad-Gauge Railway Line. The contract value of the project is Rs 1,088 crore with estimated time of completion being four years.
The project pertains to RVNL carrying out multiple works for the double gauge Haryana Orbital Rail Corporation (HORC) project that will connect Palwal to Sonipat via Sohna, Manesar, and Kharkhouda.
RVNL’s responsibilities include the design and construction of the Twin Tunnel using the New Austrian tunneling Method (NATM) and the Cut and Cover method, the designing and installing of Ballastless Tracks, and the design, supply, installation, testing, and commissioning of general electrical services on a portion of the track.
Additionally, RVNL will also be responsible for the design and construction of embankments and bridges in a different section of the railway track.
The government is currently carrying out an Offer for Sale (OFS) of Rail Vikas Nigam, where it plans on selling up to 5.36 percent stake in the company, including the greenshoe option. The non-retail portion was subscribed 2.73 times the shares on offer on Thursday.
Shares of Rail Vikas Nigam are trading 4.1 percent lower at Rs 120.95.
