RailTel Corporation of India has secured a work order extension from the Employees Provident Fund Organisation for infrastructure services, the company informed stock exchanges. The share price of RailTel jumped 5% in early trade on the back of the news.
RailTel gets Rs 166.80-crore EPFO order extension for IaaS services
The Navratna public sector undertaking said the order pertains to the extension of its existing work order with EPFO for a period of one year. The extension covers Infrastructure-as-a-Service, or IaaS, to be provided through RailTel, and includes additional components as part of the renewed scope.
According to the disclosure, the size of the order stands at Rs 166.80 crore, inclusive of tax. The order is to be executed by February 9, 2027, the company said in its filing.
RailTel received the EPFO work order on August 17
RailTel said it received the work order from EPFO on August 17. RailTel clarified that the order is domestic in nature and does not involve any interest from the promoter or promoter group companies. The company also stated that the transaction does not fall within the category of related party transactions.
About RailTel
RailTel Corporation of India is a Navratna public sector enterprise under the Ministry of Railways, incorporated in 2000 to build nationwide telecom infrastructure and modernise train control systems. According to the company, it was created with the objective of creating nationwide broadband and VPN services, telecom, and multimedia networks to modernise the train control operation and safety system of Indian Railways.
It runs a pan-India optical fibre network along railway tracks, reaching around 6,000 stations across the country. At present, RailTel’s network passes through around 6,000 stations across the country, covering all major commercial centres. The company offers telecom and IT infrastructure services, including data centre, cloud and cyber security solutions, to government bodies and corporate clients. RailTel is listed on both the BSE and NSE.
RailTel share price performance
RailTel’s share price has been up 5% in early trade on August 19. The company’s share price has been down 1.38% in the past month, and it has declined 18.92% in the past year.