RITES stock jumps 3% on MoU with SAIL-Bokaro Steel Plant for railway infrastructure

In the past 12 months, RITES stock has gained 31 percent compared to Nifty's rise of 28 percent during this period.

Shares of RITES gained more than 3 percent on October 30 as the infrastructure consultancy firm signed a Memorandum of Understanding (MoU) with SAIL-Bokaro Steel Plant (SAIL-BSL), under the Ministry of Steel.

This involves collaboration for Project Management Consultancy for rail connectivity works involving both existing and new railway tracks across various sites within the Bokaro Steel Plant in Jharkhand.

Under the MoU, RITES will provide comprehensive services, including surveying, engineering, project monitoring, supervision and quality control.

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RITES also recently secured a major contract worth Rs 59.13 crore from UP State Bridge Corporation Limited for supervision of various infrastructure projects across Uttar Pradesh as announced on Tuesday.

The company received the Letter of Acceptance (LoA) for providing consultancy services for construction supervision of bridges, rail over/under bridges, flyovers, and elevated roads, including approaches in several districts of Uttar Pradesh.

The contract will focus on supervision, monitoring, quality control, and work zone safety aspects of these civil works. The project has a 36-month execution timeline and excludes GST from the contract value.

RITES had earlier emerged as the lowest bidder (L-1) for this tender on September 5, 2024. This domestic contract involves no related party transactions, and the company confirmed that its promoter group has no interest in UP State Bridge Corporation Limited, the awarding entity.

At 10:38 am, RITES shares were trading over 3 percent higher at Rs 303.95 on the National Stock Exchange (NSE). The stock has risen around 21 percent so far this year, outperforming Nifty's returns of 12 percent.

In the past 12 months, the counter has gained 31 percent compared to Nifty's rise of 28 percent during this period.

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