RVNL Secures 49% Stake in Varkala Sivagiri Project, Stocks Surge 2%

3 Jan 2024 , 12:22 PM

Rail Vikas Nigam Limited (RVNL) witnessed a nearly 2 % surge in early trade on January 3 following the acquisition of a 49 % stake in the Rs 123.36-crore Varkala Sivagiri project.

The KRDCL-RVNL joint venture secured approval for a significant upgrade of Varkala Sivagiri railway station, with a project cost of Rs 123.36 crore. KRDCL leads with a 51 % share, and RVNL holds 49 %. The project is set to be completed in 30 months, according to an official filing by RVNL.

RVNL also entered into a contract with REC, disclosed in a separate filing with the BSE on January 2. The collaboration involves RVNL proposing financially viable projects, and REC exploring financing options directly for these projects, aiming to enhance railway infrastructure and financial efficiency.

The RVNL stock has yielded a return of 48.67 % over the last six months, outperforming the benchmark Nifty50 index, which returned 12.13 % during the same period.

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