A railway PSU stock, IRCON International, jumped over 4 per cent in morning trade on the BSE on Monday, July 21, in an otherwise weak market. IRCON share price opened at ₹192.10 against its previous close of ₹186.95 and jumped 4.30 per cent to an intraday high of ₹195. Around 10 AM, the PSU stock traded 2.46 per cent higher at ₹191.55.

Why is IRCON share price rising?

IRCON share price is rising after the railway PSU company received orders from IRCON and the Mumbai Metropolitan Region Development Authority (MMRDA).

After market hours on Friday, July 18, IRCON announced that it had received a letter of award for a project floated by RVNL. The company bid for the project in a joint venture with JPWIPL, holding a 70 per cent stake, while JPWIPL held the remaining 30 per cent.

The RVNL project is valued at nearly ₹756 crore, with IRCON’s share of ₹529 crore. It involves the construction of a roadbed, minor bridges, buildings, track installation, and other civil engineering and general electrical works in connection with the Indore-Budni section of the Bhopal Division, West Central Railway in Madhya Pradesh.

IRCON has received two separate orders from the Mumbai Metropolitan Region Development Authority, worth ₹471.30 crore and ₹642.44 crore, respectively.

The ₹471 crore order is for the design, manufacture, supply, installation, integration, testing and commissioning of 220 kV receiving substation, including 220 kV, 33kV & 25kV cabling work, complete 25kV overhead catenary system along with switching station, 33kV auxiliary power distribution system and complete SCADA system, electrical and mechanical works, lift and escalator works for part of main line, stations and Kasheli Depot of Mumbai Metro Rail Line 5 project of MMRDA, including five years of comprehensive maintenance after two years of defect liability and maintenance period.

The ₹642 crore order is for the design, manufacture, supply, installation, integration, testing, and commissioning of power supply and traction, E&M, lifts, and escalators, including five years of comprehensive maintenance after two years of defect liability maintenance period of line 6, from Swami Samarth Nagar to Vikhroli, of the Mumbai Metro Rail Project of MMRDA.

IRCON share price trend

IRCON share price looks set to snap its three-day losing run on Monday. The PSU stock has been under pressure this year, falling 12 per cent.

On a monthly scale, IRCON share price is down over 5 per cent in July so far after an over 6 per cent rise in June and a 25 per cent jump in May.

The railway PSU stock hit a 52-week low of ₹134.30 on March 3 this year after a 52-week high of ₹329.50 on July 19 last year.

Read all market-related news here

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.