RITES declares interim dividend, acquires stake in IRSDC; share price rises 3%
Board of Directors has approved investment of Rs 48 crore for acquiring a stake of 24 percent in Indian Railways Station Development Corporation (IRSDC).
December 30, 2019 / 11:47 AM IST
RITES share price rose nearly 3 percent intraday on December 30 after the company announced an interim dividend and acquired a stake in IRSDC.
The company at the meeting held on December 27 declared an interim dividend at the rate of 60 percent (Rs 6 per share) of paid-up share capital.
The board also fixed January 10, 2020, as the record date for the purpose of payment of dividend.
Board of Directors has approved an investment of Rs 48 crore for acquiring a stake of 24 percent in Indian Railways Station Development Corporation (IRSDC).
This investment is being done at face value i.e. Rs 10 per share and will provide RITES with an opportunity of growth in the emerging field of development of railway stations.
The said acquisition will get completed within 30 days of communication of offer.
"We had a strong H1 FY20, where we have seen our standalone revenue going up by 71 percent and profit-after-tax up by 72 percent on YoY basis. This growth has enabled us to announce a healthy interim dividend,” said Rajeev Mehrotra, Chairman and Managing Director, RITES.
At 11:22 hrs, RITES was quoting at Rs 289.20, up Rs 3.65, or 1.28 percent on the BSE.