In a major development, the Ministry of Railways is considering a major consolidation of its infrastructure arms, proposing a merger between IRCON International Ltd. and Rail Vikas Nigam Ltd. (RVNL).
The proposal came to light through a Railway Board office memorandum, as seen by NDTV Profit. In the document, the proposal is highlighted between IRCON and RVNL.
"Currently, there is a proposal for the merger of IRCON International Ltd. and Rail Vikas Nigam Ltd. (RVNL)," the memorandum stated.
Both entities are classified as Navratna Public Sector Undertakings (PSUs), and a potential merger would create a significantly larger and more powerful player in the railway infrastructure sector.
In the document, the Ministry has also requested the Public Enterprises Selection Board (PESB) to defer the selection process for the post of Chairman and Managing Director (CMD) of IRCON until further notice.
In light of this development, IRCON shares have zoomed upwards of 11%, whereas RVNL shares are trading with gains of more than 4%.
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