Shares of Rail Vikas Nigam Ltd (RVNL) jumped over 9 percent in early trade on January 16 after the company announced that it has received a Letter of Acceptance (LoA) from BSNL.
RVNL had informed about the potential order earlier in November. The company in an exchange filing released in the post-market hours of January 15 announced that it has received the LoA from BSNL for the same.
The order comprises the creation, upgradation, operation and maintenance of the Middle mile network of Bharat Net. The construction is expected to be completed three years. The order also includes 10 years of maintenance contract at 5.5% per annum of capex for the first five years and 6.5% per annum of capex for the remaining five years.
The entire order will be worth Rs 3,622.14 crore. RVNL will be the lead member, while HFCL and ATS will be the consortium members.
RVNL shares had opened over 4 percent higher at Rs 388 on January 16. It then jumped further to hit an intraday high of Rs 406 at around 9.30 am. The shares however later pared some gains and were trading at around Rs 396 (6.4 percent up) at 10.12 am.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
