RITES shares rise 3% on $35 million order win from South Africa; key details

On Tuesday, shares of RITES rose as much as 3% to touch the day’s high of Rs 239.75 on the BSE, against its previous close of Rs 232.65. The counter has been in an upward trend for the last three sessions, with the stock gaining nearly 8% during this period.

 Today’s surge follows the company's announcement of an international order win from South Africa.

According to a regulatory filing made on December 23, the transport infrastructure consultancy has secured a major contract from Ndalama Capital (Pty) Ltd, South Africa. The order, valued at roughly USD 35.2 million, entails the supply and commissioning of in-service Cape Gauge Alco Diesel Electric Locomotives. 

The mandate is to be executed on a CIF basis over a period of 18 months. The state-owned enterprise clarified that the contract was awarded by an international entity and does not fall under related party transactions.

Earlier on December 19, RITES informed exchanges that it had strengthened its African footprint by signing a Memorandum of Understanding (MoU) with the Government of the Republic of Botswana. 

In a filing, the company stated that the collaboration aims to modernise Botswana’s railway and transport infrastructure. The scope of this partnership includes the supply of rolling stock, modification of workshops, and providing operation and maintenance support for railway systems.

The company has also been under market observation regarding trading activity. Earlier, in a clarification issued on November 24 regarding a sudden increase in transaction volume, RITES confirmed to the bourses that it remains in compliance with all applicable disclosures. The firm stated it was unaware of any undisclosed information that could have prompted the sudden change in volume at that time.

RITES Limited is a Navratna Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India. With 50 years of experience, the company has undertaken projects in over 55 countries across Asia, Africa, Latin America, South America, and the Middle East.