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Rs 6,581 Crore Order Book and 1:1 Bonus Issue: LIC-Backed PSU Infra Company Signs MoU with National Institute of Solar Energy – Complete Details Inside
Rakesh Deshmukh

Rs 6,581 Crore Order Book and 1:1 Bonus Issue: LIC-Backed PSU Infra Company Signs MoU with National Institute of Solar Energy – Complete Details Inside

LIC holds a 6.27 per cent stake in the company as per Q1 FY25.

RITES Ltd a leading transport infrastructure consultancy, has entered into a Memorandum of Understanding (MoU) with the National Institute of Solar Energy (NISE), the apex R&D institute under the Ministry of New and Renewable Energy (MNRE). This collaboration focuses on providing Quality Assurance (QA) services for solar and renewable energy projects.

The partnership aims to combine RITES’ extensive expertise in quality assurance with NISE’s proficiency in solar energy research and technological innovation to deliver advanced solutions in the renewable energy sector. The scope includes QA initiatives in solar photovoltaic (PV) systems, solar thermal applications, green hydrogen, and other renewable energy areas.

Under the agreement, RITES will oversee QA services, while NISE will offer research, training, and technological support. Together, the organizations plan to strengthen renewable energy infrastructure and drive skill development initiatives to advance the sector.

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On Tuesday, the company’s shares closed at around Rs 274.70 per share on the BSE. The company’s current market capitalization stands at Rs 13,202 crore. Additionally, the shares have delivered a return of around 15 per cent in just one year.

As per the Quarterly Results, in the second quarter of FY25, RITES recorded a revenue of Rs 541 crore. The operating profit for Q2 FY25 stood at Rs 106 crore, and the net profit was Rs 82 crore. Looking at the annual performance, the company generated a revenue of Rs 2453 crore in FY24. The operating profit for FY24 was Rs 661 crore, with a net profit of Rs 495 crore, compared to a net profit of Rs 571 crore in FY23.

According to the company's shareholding pattern, the promoters hold a significant 72.20 per cent stake. Public investors own 14.95 per cent of the shares, while foreign institutional investors (FIIs) hold 3.20 per cent and Domestic Institutional Investors (DIIs) own 9.63 per cent.

Check out my recent article here.

Investors must keep this Small-Cap PSU infra stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.

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