Rs 1,088 crore order: Investors showed strong interest in the government's stake sale!
Shares of the company had a spectacular rally, soaring more than 290 per cent in just one year!
After hitting all-time highs in consecutive trading sessions, Indian headline indices started to decline. The BSE Sensex fell 0.16 per cent to 66,160 at the end of Friday's trading session, while the Nifty 50 index edged down by 0.07 per cent to 19,646 level.
Due to a number of factors, Rail Vikas Nigam Ltd was one of the trending stocks on the bourses. The government, which owns 78.2 per cent of the company, has proposed selling a 3.4 per cent stake with an option to sell 1.96 per cent more if the offer is oversubscribed.
Following the Indian government's announcement that it will sell a stake of up to 5.36 per cent in a state-owned corporation, shares of the company experienced intense selling pressure and tumbled more than 4 per cent on Friday. Investors, on the other hand, showed strong interest in the government's stake sale!
In addition, the company announced that it was granted a Letter of Award (LoA) from the Haryana Rail Infrastructure Development Corporation (HRIDC) for a composite contract package totaling Rs 1,088 crore.
Over the last year, shares have delivered outstanding returns of more than 290 per cent and are currently trading at Rs 120, with a 52-week high of Rs 146.65 per share on the BSE.
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The Government of India incorporated Rail Vikas Nigam Ltd in 2003, and it is in the business of putting various rail infrastructure projects, such as doubling, gauge conversion, new lines, railway electrification, significant bridges, workshops and production units, into action.
Disclaimer: The article is for informational purposes only and not investment advice.