Railway Stock Jumps After Finalising ₹915 Cr Contract With Bangladesh

RITES‘ share price was upbeat on Tuesday morning making gains for the third straight session after bagging the massive order.

What Happened: The rail infra company announced on Monday that it has signed a contract with Bangladesh Railway to supply 200 Broad Gauge passenger coaches. The deal, valued at $111.26 million (approximately ₹915 crore), was awarded through a global competitive bidding process and is funded by the European Investment Bank (EIB).

The agreement includes not only the supply of the coaches but also design expertise, spare parts support, and training. The supply and commissioning period is set for 36 months, followed by a 24-month warranty period.

See Also: IRFC Sees Net Profit Jump 34% To ₹1,717 Cr, Announces ₹0.70 Dividend

The signing ceremony took place in Dhaka, attended by the Minister of Railways, Bangladesh, Md. Zillul Hakim. RITES emphasised that this contract aligns with the ‘Make in India, for the World’ vision, showcasing the export of indigenously developed railway rolling stock.

The company has a longstanding relationship with Bangladesh, having previously supplied 120 BG Passenger Coaches, 36 BG locomotives, and 10 Meter Gauge locomotives. The company has also collaborated on various infrastructure projects in Bangladesh.

The company will post its earnings for the quarter ended March on May 28.

Price Action: RITES’ share price was up 1.07% to trade at ₹723.55 as the markets opened on Tuesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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