RITES shares climb up to 2.5% after inking ₹36 crore pact with DMRC

However, the PSU pared gains and was trading at ₹296 apiece, an increase of 0.44%, on the NSE at 3:04 pm.

The deal secured by RITES (Rail India Technical and Economic Service) is for “retrofit work on RS-1 trains of DMRC,” the company said in a regulatory filing dated November 5.

DMRC awarded RITES the ₹36.36 crore (excluding GST) contract via a letter of acceptance (LOA) on Tuesday.

The deal to retrofit DMRC’s RS-1 cars is expected to be completed three years from the LOA’s issuance date.

According to the filing, the contract will be executed entirely with DMRC as a domestic client, without any related party transactions.

RITES in consortium emerged as the lowest bidder in a tender floated by the DMRC in September this year. The former holds a 49% stake or ₹42.91 crore (including GST) in the tender.

Additionally, the company revealed in a filing on October 28 that it emerged as the lowest bidder for a separate tender raised by the UP State Bridge Corporation Ltd. The project is worth ₹59.13 crore and is expected to be completed in three years.

The PSU has a market capitalisation worth ₹14,130 crore as of November 6, as per the NSE.