RVNL-Led Consortium Emerges Lowest Bidder For BSNL Project Worth Over Rs 5,000 Crore

A consortium led by Rail Vikas Nigam Ltd, and also comprising HFCL Ltd. and Aerial Telecom Solutions Pvt., has bagged a project worth more than Rs 5,000 crore from the Bharat Sanchar Nigam Ltd, an exchange filing showed on Tuesday.

The consortium has "emerged as the lowest bidder" for the Rs 5,008-crore project that involves "development, creation, upgradation and operation and maintenance of middle mile network of Bharat Net", RVNL stated in the regulatory filing.

The share of RVNL, HFCL and Aerial Telecom in the consortium is yet to be decided.

The construction work under the project is to be completed under three years, whereas the maintenance contract will be executed over a 10-year period, the filing added.

The state-run firm on Tuesday said it has also won a construction project worth Rs 613 crore from Rail Infrastructure Development Company (Karnataka) Ltd. The project includes the construction of stations of Corridor-4A at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi and Kaggadasapura.

Additionally, another joint venture led by RVNL emerged as the lowest bidder for an Eastern Railway contract worth Rs 837.7 crore, the company announced earlier on Tuesday.

The firm signed the contract for earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, road under bridge, road overbridge, retaining wall, level crossing and other ancillary works, it said.

Shares of RVNL closed 1.08% higher at Rs 451.35 apiece on the NSE, compared to a 0.91% rise in the benchmark Nifty 50. The stock has risen 148.42% in the last 12 months and 192.86% on a year-to-date basis.

Out of three analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.4%.