Concord Control Systems Limited (CNCRD), a leading manufacturer of embedded electronic systems and critical electronic solutions for India's railway infrastructure, has achieved a significant milestone in its journey towards enhancing rail safety in the country. The company has secured its first order for KAVACH 4.0, an advanced automatic train protection system, through its associate company Progota India Private Limited.

Order Details and Scope

The order, valued at INR 19.45 crores, encompasses a comprehensive range of services including:

• Design and development
• Supply
• Installation
• Trial
• Commissioning of on-board KAVACH equipment for locomotives
• Trackside KAVACH equipment

This project will be implemented for the South Central Railway, marking a crucial step in the large-scale deployment of advanced railway safety technology across India.

Technological Advancement and Certification Progress

Concord's next-generation Kavach system has made substantial progress in the Indian Railways' rigorous approval process:

• Successfully completed approximately 70% of the demanding Safety Integrity Level 4 (SIL4) certification process
• Remaining stages aligned with upcoming trials

This achievement positions Concord as one of the few railway companies in India to have a fully developed Kavach system ready for supply to Indian Railways.

Strategic Advantage and Market Position

Nitin Jain, Joint Managing Director of Concord Control Systems Limited, emphasized the significance of this order, stating:

"This field order is not just a validation of our engineering capabilities but also a stepping stone for scaling our Kavach deployment across the Indian Railways network."

Key advantages:

• Fully in-house developed system
• Substantial first-mover advantage in the railway safety electronics sector
• New entrants typically require 3 to 5 years to reach this stage of development

These factors underscore Concord's leadership in technology, compliance, and time-to-market.

Implications for Railway Safety and Innovation

This order represents a crucial step in strengthening India's rail safety mission. As a 100% in-house developed solution, KAVACH 4.0 is set to play a pivotal role in modernizing the country's railway infrastructure. The successful implementation of this project could pave the way for more extensive adoption of advanced safety systems across the Indian Railways network, potentially transforming the landscape of rail transportation safety in India.

Looking Ahead

With this order, Concord Control Systems Limited reinforces its position as a key player in India's railway modernization efforts. The company's focus on innovative, tech-enabled solutions aligns well with the government's Gati Shakti initiative, aimed at transforming the country's infrastructure. As Concord continues to set benchmarks in railway safety innovation, it not only contributes to the enhancement of domestic rail infrastructure but also positions itself for potential expansion into international markets in the future.

Concord Control Systems Limited , a prominent player in the industrial control systems sector, has announced a significant move to reward its shareholders. The company's Board of Directors has recommended issuing bonus shares in a 3:5 ratio, subject to shareholder approval.

Bonus Share Details

The proposed bonus issue will offer three new equity shares for every five existing shares held by eligible shareholders. Each new share will have a face value of Rs. 10. This strategic decision is aimed at increasing the company's paid-up share capital and potentially enhancing liquidity in the stock.

Financial Implications

The bonus issue, if approved, will have a substantial impact on Concord Control Systems' capital structure:

The company plans to issue approximately 37,95,092 bonus shares, effectively increasing its paid-up share capital by about 60%.

Funding the Bonus Issue

Concord Control Systems is well-positioned to fund this bonus issue, with ample reserves at its disposal. As of March 31, 2025, the company reported:

• Securities Premium: Rs. 68,36,56,320
• Surplus: Rs. 36,82,85,270.08

The bonus shares will be issued through the capitalization of the company's capital redemption reserve, securities premium, or general reserve, requiring an estimated Rs. 3,79,50,920 for implementation.

Timeline and Eligibility

Shareholders can expect the bonus shares to be credited within two months from the date of the board meeting, which was held on September 7, 2025. The company has stated that the record date for determining eligible shareholders will be announced in due course.

Regulatory Compliance

This announcement comes as part of Concord Control Systems' compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed the BSE Limited, where its shares are listed.

The bonus issue represents a significant corporate action for Concord Control Systems, potentially benefiting shareholders by increasing their holdings without additional cost. However, investors should note that while the number of shares will increase, the overall value of their investment remains the same as the stock price typically adjusts to reflect the bonus issue.

As always, shareholders and potential investors are advised to consider their financial goals and risk tolerance when making investment decisions.