Rail Vikas Nigam Limited (RVNL) has signed a Memorandum of Understanding (MoU) with United Construction Limited from Israel. After this announcement, RVNL’s stock rose by 12% from its intra-day low of Rs 569.80 on the BSE.
The MoU is for both companies to work together on projects in Israel in areas like Railways, Mass Rapid Transit Systems (MRTS), Tunnels, Highways, Bridges, Airports, Ports, Irrigation, Power Transmission, and Solar and Wind sectors.
In a separate announcement, RVNL stated that a tribunal awarded Rs 584.22 crore to its joint venture, Krishnapatnam Railway Company Limited (KRCL), in an arbitration case against the Ministry of Railway (MoR).
RVNL and its partners handle various rail infrastructure projects for the Ministry of Railways, including track doubling, gauge conversion, new lines, electrification, and major bridges. The company has created eleven Special Purpose Vehicles (SPVs) and has built major workshops for Indian Railways quickly.
RVNL also signed an MoU with IMS Consultancy Private Limited to provide technical and advisory services for projects in Nepal. At 01:50 PM, RVNL was trading 8% higher at Rs 632.20, compared to a 0.54% decline in the BSE Sensex.
The stock hit a record high of Rs 647 on July 15. So far in 2024, RVNL’s market price has increased by nearly 250%, and it has risen 430% in the past year. In comparison, the BSE Sensex has gone up 12% and 21% respectively.
