RITES Limited has secured a comprehensive maintenance contract worth ₹105.69 crore (excluding GST) from Research Designs and Standards Organisation (RDSO), Lucknow, the company disclosed to stock exchanges on Saturday under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
The contract covers maintenance of a dedicated test track between Gudha and Thathana Mithri stations in the Jodhpur division of North Western Railway (NWR). The contract period is 60 months from the date of issuance of the Letter of Acceptance (LOA).
The order is a domestic contract awarded by a government entity. RITES noted that since the transaction is between a government body and a government company, the question of related party transaction at arm’s length does not arise.
Shares of RITES on the NSE were trading at ₹183.07 at 1.32 pm on Monday, down 4.43 per cent from their previous close of ₹191.56. The stock touched a fresh 52-week low of ₹182.25 during the session. The counter has fallen over 24 per cent year-to-date, sharply underperforming the Nifty 500, which is down about 13.68 per cent in the same period.
RITES Limited, a Schedule ‘A’ enterprise of the Government of India, is primarily engaged in transport infrastructure and related services. The company is listed on both NSE and BSE, with a total market capitalisation of approximately ₹8,812.83 crore as of Monday afternoon.