RITES Consortium Emerges As Lowest Bidder For Delhi Metro Project Worth Over Rs 87 Crore

A consortium led by RITES Ltd. has emerged as the lowest bidder for the Delhi Metro Rail Corp. tender involving retrofit work in RS-1 trains of DMRC, according to an exchange filing on Thursday.

The estimated value of the bid is approximately Rs 87.58 crore, with RITES' share at 49% and valued at Rs 42.91 crore, which includes GST, the filing added.

The order is subject to award after the due process of Delhi Metro Rail Corp.'s evaluation according to the requisite requirements mentioned in the tender documents.

The contract is to be executed three years from the date of issuance of the letter of award.

Earlier in August, the company's board of directors approved a 1:1 bonus equity share issue as well as a final dividend of Rs 5 per share. The company had fixed the record date of the bonus issue of one equity share of Rs 10 each for every existing share held in the company on Aug. 14.

The 'Navratna' public sector enterprise's consolidated revenue fell 9.7% to Rs 508 crore during the April–June quarter, compared to Rs 563 crore in the same quarter in the previous fiscal.

Shares of RITES closed 3.35% higher at Rs 365.45 apiece, compared to a 0.81% advance in the NSE Nifty 50 index.

It has risen 45.48% year-to-date and 47.78% in the last 12 months. The relative strength index was at 54.59.

Of the seven analysts tracking the company, four maintain a "buy" rating, two recommend a "hold", and one suggests "sell", according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.4%.