Small Cap Firm Hits Upper Circuit Following Letter of Award from Indian Railways

MIC Electronics Shares Rise on Indian Railways Contract

Shares of MIC Electronics saw a surge on Wednesday after the company announced that it had received a Letter of Acceptance (LoA) from the Sambalpur Division of the East Coast Railway Zone of Indian Railways.

The stock opened at Rs 30.55 per share on the BSE, up from the previous close of Rs 30. It later climbed to an intraday high of Rs 31.50, hitting the 5 percent upper circuit. This increase in stock price can be attributed to the buying interest that followed the company’s announcement.

The order involves the installation of Coach Indication Boards (CIB) and Train Indication Boards (TIB) at railway stations. The total project cost is estimated at around Rs 2.12 crore. This significant contract is a testament to the company's book, with the work to be carried out across multiple platforms at stations including BGBR, NPD, JNRD, AMB, and RGL.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The company said the project is to be executed within six months, with terms and conditions to be finalised at the time of signing the agreement. This contract is expected to have a positive impact on the company's financials and further solidify its position in the market.