Shares of Indian infrastructure giants Rail Vikas Nigam Ltd (RVNL) and HFCL Ltd experienced a significant surge in Thursday's trade, climbing by up to 5 percent. The rally followed announcements from both companies regarding substantial new order wins, signaling robust activity in the railway and telecom sectors.
RVNL Secures Major Railway Infrastructure Project
Rail Vikas Nigam Ltd (RVNL), an extended arm of the Ministry of Railways, received a Letter of Acceptance valued at Rs 967.92 crore (including GST) from East Coast Railway. This crucial contract involves the construction of the 3rd and 4th railway lines across a 385 km section, specifically between Nergundi-Barang (22 km) and Khurda Road-Vizianagaram (363 km) on the Bhadrak-Vizianagaram route.
The project's scope includes the construction of several major open web steel girder bridges over key rivers: Bridge No. 539 over the Birupa river, Bridge No. 544 over the Mahanadi river, Bridge No. 553 over the Kathjori river, and Bridge No. 557 over the Kuakhai river. This engineering, procurement, and construction (EPC) mode project is slated for completion within 1,095 days, reinforcing India's railway network capacity.
HFCL Lands Large BharatNet Phase-III Telecom Contract
Telecom and defence equipment manufacturer HFCL Ltd announced a significant order win worth approximately Rs 2,666.09 crore from RVNL itself. This contract is for the ambitious BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle.
The comprehensive agreement covers the supply of essential telecom equipment and accessories, installation and commissioning services, the establishment of a robust optical fibre cable (OFC) telecom network, and a 10-year maintenance commitment, which includes a one-year warranty period. This latest order builds upon a previous contract worth Rs 2,167.65 crore awarded by RVNL to HFCL for BharatNet Phase-III projects in both Uttar Pradesh (East) and (West) Telecom Circles, underscoring HFCL's critical role in expanding India's digital infrastructure.
Market Reaction
Following these positive announcements, HFCL shares were locked at a 5 percent upper circuit limit, reaching Rs 199.70 apiece on the BSE. RVNL's stock also saw a notable increase, climbing 2.42 percent to hit a high of Rs 251.20, reflecting investor confidence in both companies' growth prospects driven by new project pipelines.