RailTel shares in focus on cancellation of 3 work orders totalling over Rs 609 cr
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The cancellations were communicated through stock exchange filings.
The orders were originally issued by the State Project Director of the Bihar Education Project Council and pertained to various education infrastructure projects across the state.
The first work order, valued at Rs 89.91 crore, involved the supply of teaching and learning materials for students of Classes I to V in government schools in Bihar.
The second work order, worth Rs 262.14 crore, was for the procurement, supply and installation of smart classrooms at government middle schools across the state.
The third and largest order, estimated at Rs 257.50 crore, was for a similar scope of work, procuring, supplying and installing smart classrooms, but this time for government secondary and senior secondary schools in Bihar.
In all three instances, RailTel stated that the cancellations were due to unavoidable reasons as communicated by the customer. The Letter of Acceptance for each of these projects had been previously disclosed by the company as part of its regulatory obligations.With these cancellations, project execution under the aforementioned Letters of Acceptance will no longer proceed.
On Tuesday, RailTel shares closed 1% lower at Rs 340.25 on the BSE. Over the past week, the stock has declined 8.12%, and it is down 7.3% over the last two weeks.
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