President of India-Backed Railway PSU Company Secures USD 35.82 Million International Locomotive Order; Share Price Jumps 7%
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RITES received acceptance of its offer from South Africa's Volantis Asset Finance for the supply and commissioning of 4000 HP Cape Gauge Diesel Electric Locomotives, with execution scheduled over 20 months.
✨ Key Takeaways
On Tuesday, Indian benchmark indices traded higher in early trade. As of the latest available trade, the Nifty 50 gained 84.20 points, or 0.34 per cent, to 24,514.55. Amid the positive market sentiment, RITES Ltd share price surged 7 per cent to Rs 231.29 after the company announced a major international railway order from South Africa.
RITES Limited Secures USD 35.82 Million International Order
RITES Limited has secured an international order worth USD 35,820,000 from Volantis Asset Finance (Pty) Ltd., South Africa, for the supply and commissioning of 4000 HP Cape Gauge Diesel Electric Locomotives.
The company has received acceptance of its offer, while the formal contract agreement will be signed after completion of due diligence by both parties. Following the signing of the agreement, the order will be added to the company's order book. The project is scheduled to be executed over a period of 20 months.
Strengthens Global Railway Business
The order includes the manufacture, supply and commissioning of high-horsepower diesel electric locomotives designed for Cape Gauge railway operations, further strengthening RITES' international presence in railway engineering and rolling stock exports.
The company clarified that the order has been awarded by an overseas entity, and neither its promoter nor promoter group companies have any interest in the awarding company. It also confirmed that the transaction does not qualify as a related-party transaction.
The latest order reinforces RITES' position as a leading exporter of railway engineering solutions and expands its international project portfolio across the transport infrastructure sector.
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About RITES Limited
RITES Limited is a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways and is one of India's leading transport infrastructure consultancy and engineering companies. It provides consultancy, engineering, project management, inspection and export services across railways, highways, ports, airports, urban transport and related infrastructure sectors.
In addition to consultancy, the company is engaged in the supply and commissioning of locomotives, coaches and other railway equipment for domestic and international markets. With projects across Asia, Africa, Latin America and the Middle East, RITES has established a strong global presence in railway infrastructure and engineering services.
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Disclaimer: The article is for informational purposes only and not investment advice.