Shares of Titagarh Rail Systems Ltd., Texmaco Rail and Engineering Ltd., and Jupiter Wagons Ltd. gained up to 10% on Monday, May 25, following news reports about a major railway tender. According to reports from CNBC TV18, the stocks hit intraday highs with Titagarh Rail reaching ₹828, Texmaco Rail at ₹115.1, and Jupiter Wagons at ₹303.9 respectively. The stocks continued to trade higher in the 5.5% to 8.4% range throughout the session.
As reported by Mint, the Indian Railways is set to roll out a tender worth approximately ₹40,000 crore to procure 1 lakh freight wagons over the next four years. According to the report citing two sources, the proposed tender is likely to be slightly larger than the previous large wagon procurement in 2022. The tender could have an annual procurement of around 35,000 to 40,000 wagons, with the first set of wagon contracts likely to be issued in the July to September quarter of the current fiscal year.
According to Mint reports, in 2022, the Indian Railways issued its first long-term wagon procurement tender for around 1 lakh wagons worth approximately ₹32,000 crore. As reported by CNBC TV18, deliveries are still ongoing for some of the wagons under this tender. The new tender represents a significant expansion of the railway's procurement program, with the ₹40,000 crore value exceeding the previous tender amount.
