Rites signs MoU with Botswana Government, stock gains 3%; check details

Shares of the civil construction company Rites were in high demand during the week's first trading session on Monday, December 22, after the company announced an update on signing a Memorandum of Understanding (MoU) with the Botswana Government. Following the news, the company’s share price advanced 2.98 per cent to log an intraday high of ₹233.32 per share on the NSE.

 

Despite the gains, the stock is still over 26 per cent below its 52-week high of ₹368.20 per share on the NSE, which was reached earlier this year on June 5.

 

That said, the stock continued to see strong demand from investors on Monday. At 09:44 AM, the company’s shares were trading at ₹231.24 per share, up 2.07 per cent from its previous close of ₹226.55 per share on the NSE. The benchmark Nifty50, meanwhile, was quoted at 26,125.05, higher by 158.65 points, or 0.61 per cent. A combined total of 0.24 million shares of the company, worth around ₹8.9 crore, had exchanged hands on the BSE and NSE so far today.

 

Rites & Botswana Government sign MoU

The company has announced that it has signed a Memorandum of Understanding (MoU) with the Government of the Republic of Botswana, represented by its Ministry of Transport and Infrastructure, to collaborate on the development and modernisation of transport infrastructure in Botswana.

 

"The partnership aims to accelerate the growth of Botswana’s railway and transport infrastructure by deploying advanced technologies, global best practices, and capacity-building initiatives to strengthen local capabilities and enhance efficiency, safety, and reliability across the sector," Rites said in a release.

 

Under the MoU, Botswana will draw upon Rites Limited’s extensive technical expertise for the development and modernisation of railway systems. Rites’ scope of support will include the supply of rolling stock, commissioning, repair, operation and maintenance support for railway systems, and modernisation of workshops. The collaboration will also cover transport infrastructure development projects spanning railways, highways, bridges, airports, and buildings.

 

In addition, Rites will provide capacity-building and technical training programs, facilitate knowledge exchange, deliver quality assurance services including third-party inspections, pre-shipment inspections, and final acceptance testing, and deploy advanced information technology solutions such as integrated train operations and passenger management systems, according to the release.