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Rail Vikas Nigam Ltd. (RVNL) on Thursday announced that it has been awarded a contract for the construction of a depot cum workshop from Gujarat Metro Rail Corporation Ltd.

The state-owned company said that the contract is for “construction of Bhesan Depot cum Workshop which includes DDC, BCC and associated E&M (electrical and mechanical) works under Corridor-C2, Bhesan to Saroli, for Surat Metro Rail Project Phase-I, DC 2”.

RVNL said that the total awarded cost of the project is around Rs 199 crore excluding taxes, duties, and provisional sum.

Despite the new order, shares of RVNL touched a lower circuit of Rs 63.15 after falling nearly 5 percent on Friday as the broader markets remained weak, with the Sensex falling 1 percent, or 602 points, to 60,223.

Notably, RVNL shares have fallen around 10 percent in the last five trading sessions. However, the stock is still up 109 percent in the last six months and 85 percent in the last year.

Also Read: Halt in Rally? Rail Vikas Nigam shares drop nearly 20% from 52-week high

RVNL is engaged in the business of implementing various types of rail infrastructure projects assigned by the Ministry of Railways. This includes doubling, gauge conversion, new lines, railway electrification, and major bridges, among others.

Earlier this month, RVNL announced that it has formed a joint venture company with Kyrgyzindustry-OJSC (Open Joint Stock Company) for the development of infrastructure in Kyrgyzstan.

The company said that the core purpose behind forming this joint venture is for the construction of rail, road, and other infrastructure in Kyrgyzstan, a land-locked country in Central Asia. It would have a 50 percent shareholding in the joint venture with Kyrgyzindustry-OJSC.

Shares of RVNL are trading nearly 5 percent lower at Rs 63.15.

Also Read: Six reasons behind the surge in railway stocks and can investors still profit from them?

(Edited by : Rukmani Krishna)