RITES announces buyback of 9.6 million shares worth up to Rs 257 crore

Transport Infrastructure Consultancy and Engineering firm RITES Ltd on Friday said its board has approved buyback of 9.6 million shares with repurchase amount not exceeding Rs 257 crore

Transport Infrastructure Consultancy and Engineering firm RITES Ltd on Friday said its board has approved buyback of 96.98 lakh shares with repurchase amount not exceeding Rs 257 crore.

The board of directors has approved "buyback of 96,98,113 equity shares of face value of Rs 10 each at Rs 265 per share, translating into the total buyback amount not exceeding Rs 257 crore", the company said in a statement.

The company was listed in July 2018, and at present 72.02 per cent shares are held by the Government of India and the balance is with the public and financial institutions.

Rajeev Mehrotra, chairman and managing director, RITES Ltd, said, "The company has strong financial fundamentals with debt-free balance sheet. This repurchase reflects management's confidence in the company and growth prospects in the sectors and geographies, where we operate."

The company said the board has fixed September 30, 2020 as record date for the purpose of ascertaining the eligibility of shareholders for the buyback.

RITES Ltd is a miniratna public sector enterprise having diversified services and geographical reach.

The company has an experience spanning 46 years and has undertaken projects in over 55 countries of Asia, Africa, Latin America, South America and Middle East regions.

RITES Ltd is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).