RITES signs MoU with IRFC to identify mutual areas of collaboration, stock down 4%

Currently, the stock is trading 6.34 percent below its 52-week high and 91.75 percent above its 52-week low.

RITES, formerly known as Rail India Technical and Economic Service Limited, signed an MoU with the Indian Railway Finance Corporation (IRFC) to identify mutual areas of interest in railway projects.

The MoU will identify mutual areas of collaboration for expanding IRFC’s role in providing financial assistance to projects/institutions linked to the Railways.

RITES will assist IRFC in ascertaining the technical and financial viability of the projects, providing advisory and consultancy services.

Shelly Verma, CMD (Addl Charge) & Director (Finance) IRFC, said the partnership between IRFC and RITES will not only strengthen the financing ecosystem for railway infrastructure projects but also significantly advance the expansion and modernisation of the Indian Railways.

Shelly Verma said, "IRFC, along with RITES, will not only strengthen the financial ecosystem for Railway Infrastructure projects but also contribute to the overall growth and modernization of the Indian Railways. Partnering with a premium and established consultancy institution like RITES will enhance IRFC's appraisal and marketing capabilities in exploring funding opportunities in various sectors supporting Railway infrastructure."

At 13:39 hours, the shares of RITES were trading at Rs 477.55, down Rs 19.85, or 3.99 percent on the BSE.

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On July 24, RITES emerged as the lowest bidder in the tenders for procurement of locomotives and wagons invited by CFM, Mozambique. The estimated value of the deal is approximately Rs 500 crore.

The company's board is scheduled to meet on July 28, to consider, approve and take on record standalone and consolidated unaudited financial results of the company for the quarter ended on June 30.

Shares of RITES touched a 52-week high of Rs 509.85 and a 52-week low of Rs 249.05 on July 26, 2023 and July 26, 2022, respectively.

Currently, the stock is trading 6.34 percent below its 52-week high and 91.75 percent above its 52-week low.