HBL Engineering Limited shares rose more than 3% after the company announced that it has received a Letter of Acceptance from Banaras Locomotive Works (BLW), Varanasi, for the supply, testing and commissioning of On-board KAVACH equipment (Version 4.0).
The total contract value stands at ₹800.36 crore, inclusive of 18% GST. The order has been awarded by a domestic entity and is to be executed within a period of 12 months.
According to the company’s disclosure under Regulation 30 of the SEBI Listing Regulations, the scope of work includes supply, testing and commissioning of the On-board KAVACH system, which is part of India’s railway safety upgrade programme.
The company also clarified that none of the promoters or promoter group entities have any interest in Banaras Locomotive Works in relation to this contract. Further, the transaction does not fall under the related party transaction category.
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