RITES gains 6% to Rs 295 on bonus issue plan announcement

The board of directors of the company is scheduled to meet on Monday, June 24 to consider the proposal for issuance of bonus shares.

RITES shares rallied 6 per cent to Rs 295 on the BSE on Friday in early morning deal after the company said its board will meet on June 24, 2019 to consider bonus issue proposal.

“A meeting of board of directors of the Company is scheduled to be held on Monday, June 24, 2019 inter alia to consider the proposal for issuance of bonus shares,” Rites said in a regulatory filing today.

RITES is a Miniratna (Category-I) schedule 'A' public sector enterprise and a leading player in the transport consultancy and engineering sector in India having diversified services and geographical reach.

RITES had made a stock market debut on July 2, 2018, with listing at Rs 190 on the BSE, against issue price of Rs 185 per share. The company’s Rs 466-crore IPO, which ran between June 20 and 22, was subscribed 67 times. The price band was fixed at Rs 180-185 per share with face value of Rs 10. The stock hit an all-time high of Rs 327 on August 17, 2018.

At 09:26 am, RITES had erased its partial intra-day gain and was trading at Rs 285, up 3 per cent on the BSE. In comparison, the S&P BSE Sensex was down 0.18 per cent at 39,669 points. A combined 239,166 shares have changed hands on the counter on the NSE and BSE so far.