The shares of Rail Vikas Nigam (RVNL) surged 3 percent on March 21 after the company received letter of acceptance (LoA) from the National Highway Authority of India (NHAI) for a project worth Rs 554 crore.
RVNL said the project involves construction of a six lane, access-controlled connectivity to Visakhapatnam Port Road in Andhra Pradesh, which will connect Sabbavaram bypass on Anakapalli-Anandapuram corridor to Sheelanagar junction of NH51 6C, on a Hybrid Annuity Mode.
The project is to be completed within 730 days as per RVNL's filing on March 21, after the company announced on March 11 that it had emerged as the lowest bidder for the project.
RVNL shares have now extended gains for a fourth consecutive session, rising nearly 13 percent since March 17. The strong momentum in the stock has been helped by a bullish sentiment in the overall market, with Sensex and Nifty clocking strong gains this week. The stock has so far declined over 33 percent in the last six months, and over the past one year, it is down nearly 17 percent.
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Earlier on March 18, RVNL had announced that the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have each fined the company Rs 5.43 lakh, as half of its board didn’t constitute of independent directors, as seen during the October-December quarter of this financial year. RVNL clarified that it was a government company and the President of India vests with the power to appoint directors on its board. "All Directors in RVNL are appointed by the Government of India through its Administrative Ministry, Ministry of Railways (MoR) and RVNL has no role to play in the appointment of any Director," the company had said in an exchange filing.
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