Rail Vikas Nigam Ltd (RVNL) witnessed a remarkable 7% surge in its shares following the assignment of a ‘AAA’ rating by credit rating firm CareEdge to the bank facilities of the state-run railway company. The rating comes with a stable outlook, further boosting investor confidence.

Shares of RVNL soared to an intraday high of Rs 169, a 6.6% jump from its previous closing price on the National Stock Exchange (NSE). The stock closed 4.99% higher at Rs 166.35.

The company’s market capitalisation stands at Rs. 33,037 crores. The positive momentum continued from the opening of Friday’s trading session, with RVNL shares starting at Rs. 158.75 and reaching a high of Rs. 168, reflecting a gain of around 7%.

A total of 32.45 lakh shares of RVNL changed hands, amounting to a turnover of Rs 53.42 crore. The market cap of RVNL rose to Rs 35,122 crore on BSE. RVNL shares have displayed high volatility, with a one-year beta of 1.4.

In an exchange filing, RVNL announced that it received a ‘AAA’ rating for both long-term and short-term facilities, totalling Rs 3,500 crores. Short-term loans cater to working capital requirements, while long-term loans support asset purchases, business expansion, or growth strategies.

RVNL, headquartered in New Delhi, serves as the executing arm of Indian Railways, undertaking projects assigned for execution by the Ministry of Railways. The company operates on a turnkey basis, managing the entire project development cycle from conceptualisation to commissioning.

As per the latest shareholding pattern, the President of India, the sole promoter, holds a 72.84% stake in the company. Retail investors account for 19.02% of the holdings, followed by 5.81% by DIIs and the remaining 2.33% by FIIs.

On November 15, RVNL secured a Rs 311 crore order from the Central Railway for the construction of tunnels and bridges in Madhya Pradesh. The project involves the construction of four tunnels of 1.6 km each, including a ballastless track, earthwork in formation, and 28 bridges.