Rail Vikas Nigam Ltd announced on Thursday the receipt of three significant letters of award from the National Mineral Development Corp. for expanding the construction portfolio in Chhattisgarh. The contracts are aimed at enhancing residential infrastructure for personnel associated with mining operations in the region.
In the first contract, RVNL was awarded the construction of residential towers and a shopping complex in Bacheli, with a project cost of Rs 644.8 crore. The company confirmed that the work will be executed over a span of 34 months, according to a regulatory filing.
The second LOA from NMDC pertains to the construction of residential towers at Iron Ore Deposit‑10/11A in Bacheli, valued at Rs 536.4 crore. This project also carries the same execution timeline of 34 months.
The third and largest of the awarded contracts involves building residential towers at Iron Ore Deposit‑5 in Bacheli, amounting to Rs 796.8 crore. Similar to the previous contracts, this also has a completion target of 34 months.
RVNL confirmed that all the orders fall within the routine operations of the company and does not involve related-party transactions. The company, in its regulatory filing, has also declared that neither the promoter nor any promoter group companies have any declared interest in the entity that awarded this contract.
ALSO READ: RVNL Bags Rs 1,200-Crore Order From Northern Railway
Shares of RVNL closed 0.13% higher at Rs 318.3 apiece on the NSE on Thursday.
Out of three analysts tracking the company, one maintains a 'hold' rating on the stock, while two maintain 'sell', according to Bloomberg data. The average of 12-month consensus price target of Rs 183 implies a downside of 42.5%
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
