RITES stock zooms 12% as it trades ex-dividend and ex-bonus

RITES had announced a bonus issue ratio of 1:1, which means shareholders holding one share of Rites will get one share and the eligibility of the shareholders will be determined today

Shares of RITES jumped by up to 12 percent as buying interest surged on the ex-bonus and ex-dividend trading day. The record date for eligibility for the 1:1 bonus and Rs 5 per share dividend is set for September 20.

Investors need to purchase RITES shares to ensure their names were included on the shareholders' list by the record date.

The dividend will be paid to shareholders listed in the Register of Members and those included in the beneficial ownership statements from NSDL and CDSL as of the close of business on September 20, 2024, according to the regulatory filing.

This record date also applies to eligibility for bonus shares. RITES Ltd has approved a 1:1 bonus issue, granting one fully paid-up equity share of Rs 10 each for every existing fully paid-up equity share of Rs 10 each.

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At 10:43 am, RITES stock was trading at Rs 363.05 on NSE, down more than 45 percent from the previous close before adjustment. On an adjusted basis, however, the railway PSU stock climbed 12 percent to hit a high of Rs 384 on NSE.

A bonus issue increases the number of outstanding equity shares and reduces the share price of the stock in proportion to number of bonus shares issued.

RITES stock has garnered attention due to several developments this month. On September 4, the PSU announced a partnership with NBCC (India) Ltd. The government-run firms signed a Memorandum of Understanding (MoU) to explore and undertake a wide array of consultancy, fee-based projects, and EPC contracts from concept to commissioning.

RITES also emerged as the Lowest Bidder (L-1) for a tender issued by UP State Bridge Corporation Limited.

The company will provide consultancy services for construction civil works, focusing on supervision, monitoring, quality control, and work zone safety for the construction of bridges, rail over/under bridges, flyovers, and elevated roads, including their approaches in various districts. The estimated value of the bid is Rs 60.03 crore plus GST.

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