Railtel shares: Why this railway stock soared 14% today

Shares of RailTel Corporation of India Ltd climbed 14 per cent in Wednesday’s trade after the railway PSU received letters of acceptance (LoA) for two orders worth Rs 564.54 crore from Rail Vikas Nigam Ltd (RVNL). RailTel also received a work order worth Rs 43.96 crore from the Uttar Pradesh Police Recruitment and Promotion Board to provide security-related ancillary services during the recruitment examination, the state-run firm informed stock exchanges.

Following the development, RailTel shares climbed 13.64 per cent to hit a high of Rs 323.25 apiece. The stock cut some gains and was trading 13.01 per cent higher at Rs 321.45 by 10.10 am. RVNL shares were up 3.57 per cent at Rs 281.70.       

In a filing, RailTel announced bagging Rs 255.27 crore order from RVNL for SITC of integrated tunnel communication systems including VHF Simplex System, CCTV System, PA System & Emergency Call Points etc. 
In a separate filing, it suggested a Rs 309.27 crore order from RVNL for similar work. It also bagged Rs 43.96 crore order from Uttar Pradesh Police Recruitment and Promotion Board to provide security-related ancillary services during recruitment examination.  

Meanwhile, RailTel said it had received work order from M/s Navodaya Vidyalaya Samiti for procurement & maintenance of IT Infrastructure projects. The estimated size of order as per work order was Rs 17.12 crore. “Pursuant to Regulation 30 read with Part A (B) of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that due to unavoidable administrative circumstances, the Customer has cancelled the Work Order for the above work,” it said.