Big railway PSU merger on the way? IRCON, RVNL shares rally up to 12% on merger reports
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Shares of IRCON rallied 12% and RVNL jumped 7% on Friday after reports claiming that the Ministry of Railways has moved a formal proposal to merge the two PSU companies surfaced, boosting investor sentiment. The proposed merger, if approved, will bring together India’s two prominent railway companies to create a larger entity, online news portal PSU Connect reported, citing official sources. It added that the proposal has been initiated by the Ministry of Railways and will now have to undergo a standard review process. This includes approvals from the Ministry of Finance, the Department of Public Enterprises and the Cabinet Committee on Economic Affairs (CCEA). The reported merger aims to create a unified entity with combined specialised expertise, enhance execution capacity by leveraging RVNL’s project management strengths and IRCON’s expertise in turnkey projects and railway construction, as well as increase international presence and ...