IRCON Shares Surge on Contract from South Western Railway for KAVACH System

IRCON International Limited has officially received a Letter of Acceptance (LOA) from South Western Railway, marking a significant development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 

The project focuses on the deployment of advanced train safety technologies over an extensive railway network in Karnataka.

Award and Scope of Work

The awarded contract pertains to the survey, design, supply, installation, testing, and commissioning of KAVACH equipment along with associated works. These tasks will cover a total of 778 Route Kilometres (RKM) in the Bengaluru and Mysuru divisions of South Western Railway. This is a domestic work order awarded by a domestic entity, with IRCON tasked to execute the project within an 18-month timeframe from the issuance date of the LOA.

Contract Value and Compliance Details

The total consideration for the project stands at ₹253,56,11,803.41 (Over Rs 253 crore). The promoter group or related parties of IRCON have no financial or strategic interest in the awarding entity, thereby eliminating the possibility of any related party transactions. All disclosures are in accordance with regulatory compliance and were duly submitted to both BSE and NSE.

Read More: HBL Engineering Secures Kavach Contract from Western Railway

IRCON Share Performance 

As of May 21, 2025, at 9:50 AM, IRCON share price is trading at ₹191.48 per share, reflecting a surge of 1.69% from the previous day's closing price. Over the past month, the stock has surged by 17.47%. The 52-week high and 52-week low of the share currently stand at ₹351.60 per share and ₹134.24 per share, respectively 

Conclusion

This contract reaffirms IRCON’s growing influence in the domain of railway infrastructure and safety. The successful implementation of the KAVACH system over such a vast network will significantly enhance operational safety standards within South Western Railway. It also demonstrates IRCON’s ability to execute large-scale technical projects under stringent timelines, further solidifying its role as a key player in India’s infrastructure development landscape.
 

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