Shares of IRCON International and RITES were gaining on Friday after the two firms were given “Navratna” status by the government.

What Happened: The recognition grants the two state-run enterprises the authority to invest up to ₹1,000 crore without the need for explicit government approval.

IRCON and RITES are the 15th and 16th central public sector enterprises to receive the coveted “Navratna” status.

See Also: Porinju Veliyath Picks Up Stake In This Rekha Jhunjhunwala-Backed Micro Cap Stock

Among the previously honored 14 companies are Bharat Electronics, CONCOR, Engineers India, Hindustan Aeronautics, MTNL, NALCO, NBCC, NLC India, Oil India, PFC, Rashtriya Ispat Nigam, REC and Shipping Corporation of India.

To attain “Navratna” status, companies must consistently report a net profit exceeding ₹5,000 crore for three consecutive years. Additionally, they must maintain an average annual turnover of ₹25,000 crore for three years or demonstrate an average annual net worth surpassing ₹15,000 crore for three years.

IRCON International specializes in infrastructure construction services, encompassing projects such as roads, highways, bridges, airports, mass rapid transit systems and commercial buildings.

Meanwhile, RITES excels in transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance, along with various related services.

Price Action: Both IRCON International and RITES have displayed remarkable growth in the stock market in 2023, with shares of IRCON International more than doubling, having risen by an impressive 128%. Similarly, shares of RITES have surged by nearly 40% over the course of this year.

IRCON’s share price was up 4.05% at ₹141.40 at the start of trade on Friday, while RITES’ shares gained 3.26% to ₹488.80.

Read Next: This Mid-Cap Stock Just Became The Latest ICC World Cup Partner, Investors Still Unimpressed