Rail Vikas Nigam shares rise 5% after firm inks agreement with Tata Steel for infra projects

Rail Vikas Nigam shares rose nearly 5% today after the subsidiary of Indian Railways inked an memorandum of understanding (MoU) with Tata Steel for implementation of infrastructure projects. Shares of Rail Vikas Nigam climbed 4.8% to Rs 31.65 against previous close of Rs 30.20 on BSE.

Rail Vikas Nigam share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Market cap of the firm rose to Rs 6,453 crore on BSE.

Total 12.32 lakh shares changed hands amounting to turnover of Rs 3.82 crore on BSE.

The share has gained 60% in one year and risen 29% since the beginning of this year.

"Rail Vikas Nigam has entered into an MoU on 04 October 2021 with Tata Steel in connection with implementation of infrastructure projects either on nomination basis as a deposit work or through the special purpose vehicle (SPV) route subject to bankability of the SPV project, execution of definitive agreement and management approval," the firm said in a communication to BSE.

On September 28, the state-owned firm won a Rs 381.95-crore contract from Madhya Pradesh Metro Rail Corporation. It involves design and construction of seven elevated metro rail stations including viaduct portion within the stations and transition spans on either side of the stations of Indore Metro Rail Project.

Rail Vikas Nigam Limited provides rail construction services.

The firm is engaged in the business of executing all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges and institution buildings.