RailTel, Rail Vikas Nigam Stocks Rally On Restructuring Plan Report
Shares of RailTel Corp. Ltd. and Rail Vikas Nigam Ltd. jumped on a report of the government considering several structural changes in the state-controlled companies.
Citing a report by Sanjeev Sanyal, the principal economic adviser to the Finance Ministry, Indian Express said a merger of Rail Vikas Nigam with Ircon International Ltd., and of RailTel Corp. with IRCTC Ltd. has been proposed.
The newspaper, citing the report, said Rail Vikas Nigam's key role as a rail infrastructure company aligns with Ircon's, which is the rationale for the merger. The overlap between RailTel, a telecom infrastructure provider, and IRCTC's internet ticketing are also grounds for a potential takeover, the report said.
Shares of RailTel gained as much as 9.7%, while Rail Vikas Nigam rallied 8.6%. IRCTC and Ircon International's stocks, however, remained flat, in line with an almost unchanged benchmark Nifty 50 as of 11:25 a.m.