IRCON International shines on securing new order

IRCON International informed bourses that it has won an International Railway contract from Sri Lanka Railways.

The contract is for the upgradation of the Northern Railway line from Maho-Omanthai in Sri Lanka. Under the contract, the company will upgrade single line broad gauge track from Maho-Omantha of around 128 km length including associated infrastructure works. The estimated value of this contract is around US$ 91.27 million which is equivalent to Rs. 635 crore. The contract is financed through Exim Bank of India as per Indian lines of Credit. The contract is to be executed in 36 months.

Also, earlier the company has executed five high-value Railway Projects in Northern Sri Lanka with a cumulative contract value of over US$ 645 million.

With response to this positive development, the stock of IRCON reacted positively and surged nearly 3.6 per cent to touch day high of Rs. 414.05 per share. Later, the stock cooled down and at 13:12 hours, it was trading at Rs. 407.35, up by around 1.96 per cent from previous close.