RITES shares rally 4% on Angola deal to develop railways, related Infra

The RITES shares gained 4.5 percent in early trade on September 12 after the company signed an agreement with Caminho De Ferro De Mocamedes (CFM), Angola, for cooperation in the development of railways and related infrastructure in the African nation, including the supply of rolling stock.

As part of the deal, RITES and CFM Angola will collaborate in areas such as supply of rolling stock, railway infrastructure projects, repairing of rolling stock, operations and maintenance of railway infrastructure, IT services, technical maintenance and master planning and more.

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Earlier this month, the company had signed a memorandum of understanding (MoU) with iHUB DivyaSampark, IIT Roorkee, to jointly explore business opportunities related to innovative technologies.

Under this arrangement, RITES and iHUB DivyaSampark IIT-Roorkee will collaborate on projects, events, and network facilitation to explore opportunities for cyber physical systems-related innovation and emphasis on developing technology/industry 4.0 and AI-based solutions to meet the industry’s requirements.

In August, the company had emerged as the lowest bidder (L-1) in the tender floated by the Railway Board, for service testing and inspection of rails for the Indian Railways within India.

The said contract is to be executed in five years, extendable by one year.

The total size of the order is inspection of 60,00,000 tonnes of rails with approximate inspection fees to be received in five years is Rs 65.4 crore plus taxes.

At 9:19am, RITES was quoting at Rs 537.00, up Rs 23.80, or 4.64 percent, on the BSE.

The share touched a 52-week high of Rs 584 and a 52-week low of Rs 281.40 on September 11, 2023 and September 19, 2022, respectively. The stock is trading 8.05 percent below its 52-week high and 90.83 percent above its 52-week low.