Railtel shares rally 3% on winning Rs 66-crore order from NF Railway Construction

Railtel shares rallied over 3 percent on December 22 after the company received a Rs 66.83-crore work order from NF Railway Construction.

The order is for supply, installation, testing and commissioning of integrated tunnel communication system, emergency call arrangements in tunnels and Integrated Passenger Information System (IPIS) at stations in Bhairabi – Sairang New Single line Section of the Lumding Division.

The order has to be executed within one year from the date of Letter of Acceptance (LOA), Railtel said in a regulatory filing

At 10:07am, shares of Railtel were trading 2.9 percent higher at Rs 300 on the National Stock Exchange (NSE). A total of 31 lakh shares traded hands on BSE and combined so far on December 22.

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Railtel is a central public sector enterprise (PSU) under the Ministry of Railways that provides telecom infrastructure and information and communication technology (ICT) services. It operates an optic fibre network across India.

A few weeks ago, the PSU received a work order from Gujarat Informatics for the supply, installation, operations and maintenance of state-wide surveillance and ITMS projects across the state. Prior to that, state-owned REC Ltd agreed to provide Rs 30,000 crore in funding to Railtel.

The agreement, formalised through a memorandum of understanding (MoU) would support various projects over the next five years, including telecom, IT services, and railway signaling systems, and the KAVACH train collision prevention system.

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The Railtel stock has surged over 135 percent year-to-date, doubling investors’ money. In comparison, the benchmark Nifty has risen around 15 percent during this period.

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