Railway PSU shares rally up to 11% on report of mega RVNL-IRCON merger

Railway PSU shares rally up to 11% on report of mega RVNL-IRCON merger.

• Railway PSU shares rose after IRCON-RVNL merger proposal.
• IRCON shares jumped over 11 percent, RVNL up 3.17 percent.
• Private railway stocks like Jupiter Wagons rose over 15 percent.

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Railway PSU shares rose up to 11 percent on Friday after a report said that the Ministry of Railways has moved a formal proposal to merge IRCON International Limited with Rail Vikas Nigam Limited (RVNL). Citing sources, PSU Connect reported that the Ministry of Railways has made a formal proposal to merge IRCON International with RVNL.

However, IRCON has clarified in an exchange filing that "the company is not engaged in any such discussions or negotiations."

IRCON shares were trading more than 11 percent higher at Rs 148.75 per share on the NSE at around 1:30 pm, while those of RVNL climbed 3.17 percent to Rs 288.10 per share.

Other rail stocks like RailTel, RITES, IRFC were trading 4.2 percent, 3.5 percent and 1.5 percent higher, respectively.

IRCON is an engineering and construction corporation specialising in transport infrastructure. It has a significant international presence, having completed over 900 projects across 31 countries, including Southeast Asia and the Middle East. It is a Navratna PSU.

RVNL is the dedicated execution arm of the Ministry of Railways for project implementation. It is primarily a domestic powerhouse responsible for over 25% of India's railway electrification. It is also a Navratna PSU.

The rub-off effect was also seen in shares of the private railway firms as well.

Jupiter Wagons was up more than 15 percent at Rs 293.35 per share, while Texmaco Rail & Engineering shares climbed nearly 6 percent. Titagarh Rail Systems shares were up 5 percent at Rs 690.80 per share on the NSE.

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