IRCON International shares in focus after company bags Rs 862-crore contract

IRCON International Ltd shares are in focus on Tuesday morning after the state-owned railway infrastructure company received a Letter of Acceptance (LoA) from East Central Railway for an engineering, procurement and construction (EPC) contract worth Rs 862.46 crore. The contract covers railway track works and the supply of materials for the construction of the third and fourth lines under the Son Nagar-Andal project.

The company disclosed the contract in a regulatory filing dated October 12. The order is classified as a domestic works contract and is scheduled to be completed within 365 days.

IRCON International shares closed at Rs 104.75 on Monday, October 12, up Rs 0.15, or 0.14%, from the previous close of Rs 104.60. The stock will be watched in Tuesday's session following the company's announcement of the railway contract.

IRCON International: Details of the Rs 862 crore order

The contract covers the supply of ballast and permanent way (P.Way) materials, laying and linking of railway tracks, and other associated works designed for a 32.5-tonne axle load.

The work will be carried out across two sections of East Central Railway: the Gomoh-Koderma section, covering railway kilometres 300.15 to 393.68 under the Dhanbad division, and the Gaya-Son Nagar section, covering railway kilometres 475.200 to 542.075 under the Deen Dayal Upadhyaya division.

The order also includes the supply of various P.Way materials at Gaya in connection with the construction of the third and fourth lines of the Son Nagar-Andal project.

The total contract value stands at Rs 862,45,93,012.51, or approximately Rs 862.46 crore. IRCON clarified that the order was awarded by a domestic entity and does not fall under related-party transactions. The company's promoter, promoter group and group companies have no interest in the awarding entity.