Ircon International jumps, Rail Vikas Nigam gains on reports of proposed merger

Ircon International surged 11.39%, while Rail Vikas Nigam advanced 3.28%, as the reports boosted investor sentiment in these stocks.

According to media reports, the Ministry of Railways has moved a formal proposal to merge the two companies to create a larger and more integrated railway infrastructure entity. The proposal will now undergo a standard review process, which includes approvals from the Ministry of Finance, the Department of Public Enterprises and the Cabinet Committee on Economic Affairs (CCEA).

If approved, the merger is expected to combine Rail Vikas Nigam's project management capabilities with Ircon International's expertise in turnkey railway construction and infrastructure development. The move is also seen as a step towards enhancing execution capacity, improving operational efficiency and strengthening the international presence of the combined entity.

Meanwhile, BSE has sought clarification from the companies regarding the news report, and a response is awaited.

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