Rites Share Price Surges by 6% After Signing Agreement with Delhi Metro Rail Corporation
Shares of Rites Limited, a company operating in the railway sector, saw a significant surge in trading on Friday. The company’s shares were trading 6% higher on Friday. The main reason for the bullish trend in the company’s shares is the recent agreement signed with Delhi Metro Rail Corporation.
On Friday, June 14, 2024, Rites Limited’s shares touched a price of ₹721 in intra-day trading. By the end of the day, the shares closed at ₹704.50, up by 3.69%.
Rites Limited and Delhi Metro Rail Corporation will work under the MOU to work on metro rail, rolling stock, depot management, station management, and maintenance of basic railway infrastructure. Rites Limited also signed an agreement with Eastern Railway Diesel Shed on June 11 and received a contract worth ₹39.63 crores from Tata Steel on June 6.
Over the past month, Rites Limited’s share price has increased by more than 21%. In the last six months, the company’s shares have delivered returns of over 40% to its investors.
Over the past year, Rites Limited’s share price has surged by 85.9%. The government of India holds a 72.20% stake in Rites Limited, while LIC holds a 6.3% stake. The 52-week high for the company’s shares is ₹826.15 and the low is ₹365.
Mutual funds have reduced their stake in the company. In December 2023, mutual funds held a 4.75% stake in Rites Limited, which decreased to 3.38% in March. While mutual funds are reducing their investment, foreign investors are increasing their stake in Rites Limited.
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