Ashoka Buildcon shares jumped to a day high of Rs 110 on 12 October, up 7%, after winning a Rs 290.23 crore North Eastern Railway order.

A traction substation is basically a power stop for trains. It takes electricity from the grid and feeds it to the overhead wires that run electric trains.

The news came on Friday evening. Ashoka Buildcon Limited told exchanges on 9 October that North Eastern Railway has sent it a Letter of Acceptance.

The contract is worth Rs 290.23 crore, including GST. Ashoka will handle the whole job on an EPC basis.

That covers design, supply, building, testing and switching on the substations, plus the switching posts that go with them.

The stretch runs between Gorakhpur Cantt and Chhapra Gramin in the Varanasi Division.

The work is part of an effort to lift the electric power supply capacity along that section. Ashoka has 24 months to finish. The clock starts from the date work begins.

The contract also carries a bank guarantee equal to 5% of its price, which acts as security for the railway.

After handover, Ashoka stays responsible for fixing any defects for two years. The order follows a deal in the transmission space last month.

On 23 September, Ashoka took over a 100% stake in Sakoli Power Transmission Limited, a company set up for a single intra-state transmission project in Maharashtra, from REC Power Development and Consultancy Limited, a wholly owned arm of REC Limited.

At 10:55 am, it’s trading at Rs 104.87 on NSE, up Rs 2.85 or 2.79%.

The share has dropped about 45.6% over the past year and 37.6% this year, and its 52-week low of Rs 100.31 came on 9 October, the day the order arrived. Its market value is about Rs 2,943 crore.

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