RVNL shares hit 52-week high as PSU emerges lowest bidder for Rs 251-crore power transmission project

RVNL Share Price NSE, BSE: The shares of Rail Vikas Nigam Limited (RVNL) - a Navratna CPSE under the Ministry of Railways, Government of India - surged over 5 per cent to hit a 52-week high on Tuesday i.e. January 16. The stock opened with a gain of 2.02 per cent  today and went on to hit an intra-day high of Rs 231.80 
 
The counter has been gaining for the last 6 days and has risen 25.02 per cent returns in the period.

The stock surged after the firm said that it emerged as the lowest bidder for a power transmission project in Madhya Pradesh worth Rs 251 crore.

The order by MP Madhya Kshetra Vidyut Vitran Co. includes supply, installation, testing and commissioning of 11 kV line-associated works, according to an exchange filing on Monday.

Shares of RVNL have given a multibagger return of 195.58 per cent in the last one year. The counter has given a return of 524 per cent in the last two years. 

Earlier, REC entered into an MoU with RVNL to finance up to Rs 35,000 crore worth of infrastructure projects to be executed by RVNL over the next five years, according to an official statement on Wednesday.

These projects constitute multi-modal logistics hub projects, rail infrastructure projects, road, port, and metro projects.
Director (Finance), REC, Ajoy Choudhury and Director (Operations), RVNL, Rajesh Prasad signed the MoU.
 
RVNL caters to about 30 per cent of the infrastructure requirements of Indian Railways and has also pioneered the implementation of large infrastructure projects under the PPP model.

RVNL is primarily undertaking Railway projects and has also made forays into road, port, irrigation and metro projects, many of which have forward and / or backward linkages with Railway infrastructure one way or the other.