Multibagger Miniratna PSU Spikes 13%, Leads Nifty 500 Pack: Key Driver?

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Multibagger Miniratna PSU Spikes 13%, Leads Nifty 500 Pack: Key Driver?
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the state-owned railway company Rail Vikas Nigam (NS: RAIV ) Limited (RVNL) rallied 12.82% to Rs 66 apiece at 10:47 am on Thursday, largely defying a weak market mood.

The Miniratna CPSE has emerged as the Lowest Bidder (L1) for the manufacture as well as maintenance of Vande Bharat Trainsets, including the upgradation of the Government Manufacturing Units & Trainset Depots in a joint venture with its select joint venture partners.

According to RVNL’s regulatory filing, the Vande Bharat Trainsets’ project has been awarded to the following joint venture partners:

  • Joint Stock Company Metrowagonmash: 70%,
  • Rail Vikas Nigam: 25%, and 
  • Joint Stock Company Locomotive Electronic System: 5%.

The JSC Metrowagonmash-Mytischi-RVNL joint venture has been declared as the lowest bidder, and the total quantity of trainsets awarded is 200, with the cost of each set at Rs 120 crore. 

RVNL said in its latest exchange filing that the Letter of Award (LOA) and Declaration will be submitted as and when the LOA is received.

Media reports stated that the consortium made a bid of nearly Rs 58,000 crore, with the cost to manufacture a single train set at Rs 120 crore.

The railway stock is the top gainer on the broadest market index Nifty 500 . Further, it is a multibagger stock that is up over 108% in the past one year.

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