Shares of RITES Ltd. rose by nearly 12% to touch a day’s high of Rs 754.40 on 29 July after the company announced that it would hold a board meeting on 31 July to review a bonus share issue.

The board will review the bonus share proposal, June quarter earnings, and the first interim dividend for FY 2024-25. The record date for the bonus issue has not been set yet.

In 2019, the company declared a 1:4 bonus issue, giving shareholders one free share for every four shares they owned.

Bonus shares are issued to use up free reserves and boost EPS and paid-up capital. The issuance of bonus shares also helps reduce the company’s reserves.

Last week, the company received a letter of intent for a hospital construction project in Amravati, Maharashtra. The estimated cost of the project is Rs 321.3 crore.

Last month, RITES signed an MoU with Delhi Metro Rail Corporation to explore consultancy and operations for Metro Rail Systems. The company’s order book stands at Rs 5,690 crore as of Q4 FY24.

The market capitalisation of the company stands at Rs 17,830 crore.

At 10:53 AM, the shares of RITES Ltd. were trading 11.24% higher at Rs 742 on BSE.

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