RITES hits new high on export order win worth Rs 5,670 million

Shares of RITES hit a new high of Rs 284, up 7% on the BSE, extending its Friday's 19% surge, after the company said it secured the export order of $82.63 million (approx Rs 5,670 million).

Shares of RITES hit a new high of Rs 284, up 7% on the BSE, extending its Friday’s 19% surge, after the company said it secured export order of USD 82.63 million (approx Rs 5,670 million).

The stock of railways consultancy firm RITES had closed at Rs 264, its highest level since listing on July 2, 2018. In past six trading sessions, it zoomed 46% from Rs 194, as compared to 2.3% rise in the S&P BSE Sensex.

“The company has secured an export contract for broad gauge passenger air-conditioned and non air-conditioned coaches for a total value of USD 82.63 million (approx. Rs 5,670 million),” RITES said on Saturday.

These coaches are to be exported within 27 months of the opening of Letter of Credit. Company is confident of completing the export within the prescribed timeline. These coaches will be manufactured at production unit of lndian Railways, and the Company has nominated the agency for such exports, it added.

RITES had raised Rs 4,660 million through initial public offering (IPO) by issuing shares at a price of Rs 185 per share. The issue got a huge response from all kind of investors, which was subscribed more than 67 times. The category set aside for qualified institutional buyers (QIBs) was subscribed 71.72 times, non-institutional investors 194.56 times and retail investors 15.74 times.

At 11:21 am; RITES was trading 4% higher at Rs 275 on the BSE, as compared to a 0.09% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than three-fold with a combined 5.91 million equity shares changed hands on the BSE and NSE so far.