Dynamic duo: Miniratna seals multi-MoU deal with DNV and IRFC; do you own it?
The President of India holds a significant stake of 72.20 per cent in the company.
On July 27,2023, the opening bell brought a hopeful start for the Sensex and Nifty, as they embraced gains of 0.38 per cent and 0.42 per cent respectively, evoking a sense of optimism in the market. Yet, as the trading session progressed both indices experienced a gradual descent by the end of the day. The Sensex concluded with a decline of 0.66 per cent, while the Nifty followed suit with a dip of 0.6 per cent.
Today, RITES Limited has entered into a MoU with DNV Business Assurance India Private Limited. The MoU aims to jointly explore business opportunities in the domain of Independent Safety Assessments (ISA).
As part of this collaboration, RITES and DNV will work together to leverage their individual strengths and expertise. Their joint efforts will focus on identifying, securing, and executing Railway Assurance & Advisory Services for Railway Rolling Stock & Signaling, as well as the train control system domain, adhering to applicable standards for Metro, Mainline, and Generic products.
Simultaneously, RITES Limited and Indian Railway Finance Corporation (IRFC) signed a Memorandum of Understanding (MOU). The MOU aims to identify areas of mutual collaboration to enhance IRFC's role in offering financial assistance to projects or institutions that are connected to the Railways, either backward or forward linkages.
Under this collaboration, RITES will extend its support to IRFC in assessing the technical and financial feasibility of the projects. Additionally, RITES will provide advisory and consultancy services to facilitate the successful execution of these projects. The partnership between RITES and IRFC is expected to strengthen and expand financial assistance for ventures associated with the Railways sector.
These developments showcase RITES' proactive approach to tapping into new opportunities and forming strategic alliances. The company's efforts to ensure safety, quality, and financial viability in its projects align with its commitment to delivering value to stakeholders.
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Company profile:
RITES Limited previously known as Rail India Technical and Economic Service Limited, is a Miniratna (Category-I) Central Public Sector Undertaking under the Ministry of Railways. Established on April 26, 1974, it operates as a multidisciplinary engineering and consultancy organization. It offers a wide array of services spanning from conceptualization to project execution in various aspects of transport infrastructure and related technologies. Its expertise covers the entire spectrum of the transportation sector making it a key player in the industry.
The cherry on top is that the President of India holds a significant stake of 72.20 per cent in RITES Limited, showcasing the government's strong interest and active involvement in the company's affairs.
In today's volatile market sentiment, the shares of RITES Limited plunged 3.92 per cent. The company's current market capitalization is Rs 11,481.62 crore.
Investors should keep a close eye on this civil construction stock.
Disclaimer: The article is for informational purposes only and not investment advice.