Shares of RITES jumped by up to 12% on September 20, 2024, as the company traded ex-bonus and ex-dividend. The excitement among investors was palpable, with the record date for a 1:1 bonus issue and a ₹5 per share dividend set for the same day.
Bonus and Dividend Details
RITES announced a generous bonus issue, meaning shareholders will receive one additional fully paid-up equity share for each share they own. This announcement has generated considerable buying interest, driving the stock's performance on the National Stock Exchange (NSE).
Trading Highlights
At 10:43 AM, RITES stock was trading at ₹363.05 on the NSE, reflecting a more than 45% drop from the previous close before adjustment. However, on an adjusted basis, the stock climbed to ₹384, marking a significant increase on the trading day.
Eligibility Criteria
To qualify for the bonus and dividend, investors needed to purchase RITES shares before the record date. The dividend will be paid to shareholders registered in the Register of Members and included in beneficial ownership statements from NSDL and CDSL as of the close of business on September 20, 2024.
Strategic Partnerships
RITES has been in the spotlight for multiple developments this month. On September 4, the company announced a partnership with NBCC (India) Ltd to undertake a variety of consultancy and EPC contracts. This collaboration is expected to enhance RITES' service offerings significantly.
Recent Wins
The company also emerged as the Lowest Bidder (L-1) for a ₹60.03 crore tender issued by UP State Bridge Corporation Limited. This contract involves providing consultancy services for construction civil works, ensuring quality control and safety during the construction of bridges and elevated roads across various districts.
Conclusion: Positive Momentum
RITES' robust stock performance reflects a positive sentiment among investors, buoyed by its recent announcements and strategic moves. The combination of a favorable bonus issue and dividend, along with new business opportunities, positions RITES for continued growth in the competitive railway sector.
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