IRCON International Stock Surges 5% as PSU Receives ‘Navratna’ Status, Gaining More Autonomy
In early trading on October 13, IRCON International’s stock witnessed a robust 5 percent surge, following the Government of India’s notable decision to confer ‘Navratna’ status upon the public sector undertaking (PSU), bestowing greater autonomy. At 9:19 am, IRCON International’s stock was trading at a 4.60 percent higher value of Rs 142.24 on the National Stock Exchange (NSE).
On October 12, IRCON International Ltd. and RITES Ltd. disclosed to the exchanges that they had been granted the prestigious “Navratna” status by the Government of India. This elevated status enables a state-run enterprise to invest up to Rs 1,000 crore without requiring explicit government approval. With this recognition, IRCON and RITES join the ranks of the 15th and 16th Central Public Sector Enterprises (CPSEs) to have been honored with the “Navratna” status.
The Government of India has previously accorded the “Navratna” status to fourteen other distinguished companies, including Bharat Electronics, CONCOR, Engineers India, Hindustan Aeronautics, MTNL, NALCO, NBCC, NLC India, NMDC Limited, Rashtriya Ispat Nigam, Shipping Corporation of India, RVNL, ONGC Videsh Ltd, and Rashtriya Chemicals & Fertilizers Limited.
To be eligible for “Navratna” status, a company must report a net profit exceeding Rs 5,000 crore for three consecutive years, maintain an average annual turnover of Rs 25,000 crore for three years, or demonstrate an average annual net worth of over Rs 15,000 crore for three years.
IRCON International specializes in infrastructure construction services, encompassing projects such as roads, highways, bridges, airports, mass rapid transit systems, and commercial buildings. In contrast, RITES offers services related to transport infrastructure consultancy, railway inspection, rolling stock leasing, maintenance, and other associated sectors.
The stock of IRCON International has displayed remarkable performance in 2023, with its value more than doubling, registering a remarkable 128.02 percent increase by the close of trading on October 12. Similarly, shares of RITES have also experienced significant growth, rising nearly 41 percent thus far this year.
