RVNL rises 2% on picking up 49% in Varkala Sivagiri station project JV

The RVNL stock has given a return of 48.67 percent over the last six months. The benchmark Nifty50 index has given a return of 12.13 percent over the same duration.

Shivam Shukla

January 03, 2024 / 09:58 IST

Rail Vikas Nigam JV gets project worth Rs 123.36 crore for upgradation of Varkala Sivagiri railway station.

Shares or Rail Vikas Nigam Limited (RVNL) jumped nearly 2 percent in early trade on January 3 after securing a 49 percent stake in the Rs 123.36-crore Varkala Sivagiri project. At 9:15am, the RVNL stock was trading at Rs 183.24 on the NSE.

The KRDCL-RVNL joint venture has secured the approval for a significant upgrade of Varkala Sivagiri railway station, with a project cost of Rs 123.36 crore. In this partnership, KRDCL takes the lead with a 51 percent share, while RVNL holds 49 percent. The said order will be executed in 30 months as stated in an official filing by RVNL with the exchange.

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Further, Rail Vikas Nigam has also signed a contract with REC, as disclosed in a separate filing with the BSE on January 2. In this collaboration, RVNL will propose financially viable projects with assured or projected revenue/returns. REC, in response, will explore financing options directly for these projects, following pre-stipulated conditions and returns. The aim of this partnership is to boost railway infrastructure and financial efficiency, signifying a noteworthy stride in the development of the railway sector through strategic cooperation between Rail Vikas Nigam and REC.

Stock Performance

The RVNL stock has given a return of 48.67 percent over the last six months. The benchmark Nifty50 index has given a return of 12.13 percent over the same duration.