Shares of Gurugram-based STL Networks jumped 5% on Wednesday to hit a day's high of Rs 51.93 on the NSE after the company emerged as the lowest bidder for a Rs 250 crore contract floated by RailTel Corporation of India .
According to a filing with the exchange, the contract is for design, supply, installation, testing, commissioning, configuration, integration, migration, and deployment of cloud infrastructure solution at RailTel data center and disaster recovery site.
The broad consideration or size of the order or contract is Rs 249.8 crore inclusive of taxes and the order or contract is awarded by a domestic entity. The execution time period for the order is not mentioned in the exchange filing; it is detailed in the bid document by RailTel Corporation of India.
The company further said that no promoter/ promoter group / group companies have any interest in the entity that awarded the order(s)/contract(s) and the order(s)/contract(s) would not fall within related party transactions.
On September 15, the company proposed the incorporation of a wholly owned subsidiary, stating that this subsidiary is proposed to be incorporated with the primary objective to establish, acquire, own, operate, manage and market data centre & telecommunication infrastructure, data centre solutions and connectivity services.
It also plans to obtain and maintain all requisite licences, approvals and authorisations from the Department of Telecommunications and other regulatory authorities and carry on the business of providing integrated data centre and connectivity solutions, including all incidental and ancillary activities, with a focus on operational flexibility, scalability and growth in the digital infrastructure and telecommunications sector.
STL Networks shares gained over 84% in the last one month, and over 131% in the current calendar year so far. In the last one year, the stock delivered gains of over 75%.