Shares of RITES Limited climbed over 3% in early trade after the company announced a major international order from South Africa, reinforcing its growing footprint in the global railway infrastructure and rolling stock segment.
RITES informed exchanges that it has received a Letter of Award from Ndalama Capital (Pty) Ltd. for the supply and commissioning of in-service diesel electric locomotives. The order marks another important overseas win for the PSU, highlighting its capabilities in executing complex railway projects outside India.
According to the regulatory filing, the contract involves the supply and commissioning of in-service Cape gauge ALCO diesel electric locomotives on a CIF basis in South Africa. The project has been classified as an international order and is scheduled to be executed over a period of 18 months, providing healthy revenue visibility for the company.
The total consideration for the contract stands at USD 35.2 million, translating to approximately USD Thirty Five Million Two Hundred Thousand. RITES also clarified that neither its promoters nor promoter group entities have any interest in the awarding company, and the transaction does not fall under related party transactions, ensuring full compliance with regulatory norms.
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