Shares of RITES Ltd rallied 6% on 14 June after the railway engineering services company announced signing a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation (DMRC).

The two businesses will work together on rolling stock, depot and station management, and railway infrastructure maintenance projects related to Metro Railway operations and management in India and abroad.

Through this partnership, the company can streamline the process of jointly exploring, securing and executing consultants to operate and manage Metro/LRT/Mass Rapid Transit Systems in India and beyond.

According to the announcement, DMRC and RITES will collaborate to improve commercial capacities and take advantage of one another’s advantages.

Earlier on 11 June, the company signed an MoU with the Eastern Railway’s Andal Diesel Shed, located in West Bengal’s Asansol Division. Through this MoU, they will establish a framework for working together on major maintenance and repairs of diesel-electric locomotives owned by RITES and other clients at the Andal Diesel Shed facility. 

On 6 June, Tata Steel awarded the business a Letter of Award for Loco Hiring along with Operation, and Maintenance for a total consideration of Rs 39.63 crore. 

At 11:34 am, the shares of RITES were trading 4.65% higher at Rs 711 on NSE.