Titagarh Rail Systems Ltd., a railway stock, which was declining for the past month, has been gaining today upon receiving a new order from NCC Ltd. worth ₹1598.55 crore. The order is for the Mumbai Metro Rail project of MMRDA. 

Details of the Contract

The contract that Titagarh Rail has received from NCC is for designing, manufacturing, supplying, installing, integrating, testing, and commissioning of rolling stock. This is for the Line 6 of the Mumbai Metro Rail project that connects Swamy Samarth Nagar to Vikhroli. The contract also includes five years of comprehensive maintenance services after the two-year defect liability maintenance period. 

For the designing and building of the infrastructure, the timeframe decided is 104 weeks. In the previous month, Titagarh Rail Systems received the LoA of ₹312 crore from the Ministry of Railways. 

Under this product, 780 BVMC-C wagons will also be manufactured, and this needs to be done within 9 months of the order placement date. 

Preferential Issue by Titagarh Rail System 

In the last month, Titagarh Rail’s board approved the ₹200 crore fundraising via issuing warrants on a preferential basis. Around 21.16 warrants will be issued, and these will be fully convertible to an equivalent number of equity shares with a face value of ₹2 each. These warrants are worth ₹945 per piece and are issued to promoter entities on a preferential basis. 

Titagarh Rail Systems Share Price 

In the past six months, the Titagarh Rail Systems shares fell by 6.13%. If you look at the past year’s data, it dipped by over 40%. However, today, upon the announcement of the new order, it has started gaining, and at around 2 p.m. today, it has gained 1.18% and is trading at ₹846.10 per share. 

Source: CNBC TV18

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