Share Market News: Government company giving 544% return in 3 years got an order of Rs 312 crore, keep an eye on the stock:

News Topical, Digital Desk : Share Market News: Titagarh Rail System Limited has informed about receiving the order on Monday, August 4. The company has said in the filing that it has received a big order of ₹ 1,598.55 crore from NCC Limited for the Mumbai Metro Rail Project (MMRDA).

Under this contract, the company will have to design, construct, supply, install, integrate, test and commission Metro Line 6 from Swami Samarth Nagar to Vikhroli. Apart from this, maintenance for five years after a defect liability period of 2 years is also included. The time limit for completion of design and construction work has been set at 104 weeks.

Last month, Titagarh Rail System also received a Letter of Acceptance (LoA) from the Indian Railways Ministry for an order of ₹ 312 crore. This rail infrastructure project is for the construction and supply of 780 BVMC-C wagons, which has to be completed within nine months.

21 lakh warrants will be issued Also, the company's board has also approved fund raising of up to ₹ 200 crore on a preferential basis. Under this, 21.16 lakh warrants will be issued, which can be converted into an equal number of equity shares, whose face value is ₹ 2 per share. These warrants will be issued to the promoter entities at a rate of ₹945 per warrant. Shares of Titagarh Rail System closed 2.53% lower at ₹838.35 in the previous session. The stock has declined about 10.93% in the last one month, while it is down about 24.36% so far this year. The shares are trading at less than half of their recent 52-week high of ₹1,636. This big order is being considered a positive sign for the company, raising hopes of improvement in this underperforming stock. Investors are keeping an eye on future trends.