Kernex Microsystems shares hit 5% upper circuit on Friday after the company announced that South Eastern Railway has issued a Letter of Acceptance (LoA) to the Kernex-MRT consortium for a Rs 325.33-crore contract to supply, install, test, and commission the Kavach safety system across 688 RKM in the Kharagpur and Chakradharpur divisions.
“We would like to inform you that ‘South Eastern Railways, Kolkata’ has issued a Letter of Acceptance (LoA) to the KERNEX-MRT CONSORTIUM for the project, namely, the supply, installation, testing, and commissioning of Kavach on GO & GO routes (688 RKM), including associated works in sections of the Kharagpur and Chakradharpur divisions of South Eastern Railway,” the company said in an exchange filing.
As of 9:15 am the shares were trading 5% higher at Rs 889.70 on NSE.
The Rs 325.33 crore project, inclusive of GST, is expected to be completed within 1,000 days from the appointed date. Kernex Microsystems is the lead member of the consortium executing the project.
Kavach is an advanced Train Collision Avoidance System (TCAS) designed to enhance railway safety by preventing signal passing at danger, overspeeding, and collisions. The system is a part of the Indian Railways’ push towards improving train safety and reducing the risk of accidents.
