RITES shares zoom over 13% ahead of board meet on July 31 to consider bonus issue

RITES Ltd shares jumped to an intraday high of ₹754.3 on the NSE, reflecting gains of 13% from the previous close, in early deals. However, the stock pared early gains to trade 11.47% higher at ₹743.65 apiece on the NSE at 10:48 am.

The public sector undertaking (PSU) of the Railway Ministry has informed the stock exchanges that its board will meet on July 31 to consider and approve the standalone and consolidated financial results of the company for the quarter ended on 30th June, 2024.

According to the stock exchange filing, the board will consider a proposal to issue bonus shares to eligible shareholders and will also consider and approve the first interim dividend for FY 2024-25.

RITES Ltd paid a total dividend of ₹9.25 per share in the last financial year.

The rail PSU announced a bonus share issue of 1:4, i.e., one equity share for every four equity shares held by shareholders, on August 8, 2019.

Shares of the company have soared around 47% in 2024 so far. The stock has gained 60% in the past year, while the past five years' returns have been around 213%.

The PSU announced last week that it has bagged a contract from the Directorate of Medical Education & Research, Mumbai, for the work of Project Management Consultancy (PMC) on a turnkey basis for the construction of a new government medical college with a 100-student capacity and a 430-bedded hospital at Amravati, Maharashtra.

The estimated project cost, including PMC fees, is estimated to be ₹321.30 crore, excluding GST.