IRCON, RVNL shares jump up to 12% today; here’s why

Shares of IRCON International Ltd and Rail Vikas Nigam Ltd (RVNL) gained up to nearly 12% in Friday’s trade following merger reports of the two PSUs. 

In a March 5 report from PSU Connect, reported that the Ministry of Railways has made a formal proposal to merge the two infrastructure giants. 

On Friday, IRCON shares gained as much as 11.61% in early trade to touch a day’s high of Rs 149.45 on the BSE, against its previous close of Rs 133.90. At last check, the RVNL counter was trading 3.75% higher at Rs 290.60 apiece, up from its previous close of Rs 280.10.

According to the PSU Connect report, the Ministry of Railways, which serves as the administrative parent for both Central Public Sector Enterprises (CPSEs), initiated the merger in order to eliminate duplication of effort and resources.

If approved, the combination will create a unified infrastructure behemoth equipped to bid for and execute mega projects on a much larger scale, it said.

However, the proposal must still clear a rigorous review process, requiring nods from the Ministry of Finance, the Department of Public Enterprises, and the Cabinet Committee on Economic Affairs, alongside shareholder and SEBI approvals, the report noted.

Earlier, exchange filings from both companies highlighted that the NSE and BSE levied an identical fine of Rs 977,040 on both IRCON and RVNL. The penalties were imposed for non-compliance regarding the composition of their respective boards and committees for the quarter ended December 31, 2025. 

In response, both firms clarified to the exchanges that they have no role in these appointments, as the power to nominate directors rests solely with the President of India through the Ministry of Railways. 

Meanwhile, RVNL announced the appointment of Manoj Kumar Pandey as its new executive director (electrical), effective March 2, 2026.