Ashoka Buildcon share price surges the most in six years after ₹600 crore RVNL order win

Shares of Ashoka Buildcon gained nearly 15% on Monday, August 31, after the company won an order worth ₹602.16 crore from Rail Vikas Nigam.

This is its biggest single-day gain since April 9, 2020, when the stock had risen 18.2%.

The significant terms and conditions of the contract include percentage rate bidding, performance BG of ₹25.51 crore to be submitted to RVNL and defect liability period of two years, the company said in an exchange filing.

Ashoka Buildcon on Saturday said it has received the letter of acceptance for the project. It includes the supply, erection, testing and commissioning of electro mechanical (E&M) system comprising 33/11kv and 11/0.433kb GIS substations, HT& LT cables, DG sets, lighting, UPS System, Ventilation Systems and Fire Fighting Systems and other associated works for Tunnel T-13, T-14, T-15 and T-16 under package E-4 of Rishikesh Karnprayag New BG Rail Line Project in Uttarakhand.

The order is to be completed in 30 months from the date of commencement, according to the company's statement to the exchanges.

On another note, earlier this month, Ashoka Buildcon received a letter of intent from REC Power Development and Consultancy for a transmission project in Maharashtra, which carries annual transmission charges of around ₹126.5 crore.

The project involves establishing the Sakoli substation in Bhandara district, Maharashtra and was awarded via tariff-based competitive bidding (TBCB) route, as per an Ashoka Buildcon exchange filing.

Shares of Ashoka Buildcon are trading 11.1% higher on Monday at ₹125.18. The stock is down 25% so far this year.

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