Railway Stock Surges 4% After Signing MoU With DMRC

Rites‘ share price was upbeat on Friday morning going up over 4% to hit an intraday high of ₹707.90.

What Happened: On Thursday, RITES and the Delhi Metro Rail Corporation (DMRC) entered into a Memorandum of Understanding (MoU). According to a press release submitted to the exchange, this MoU aims to explore consultancy and operations & management (O&M) of Metro Rail Systems.

See Also: Suzlon To Undergo Corporate Governance Review With Khaitan & Co After Director Resignation

The agreement is designed to facilitate joint efforts in exploring, identifying, procuring, and executing consultancy assignments for the operations and management of Metro, Light Rail Transit, and Mass Rapid Transit Systems both in India and internationally. This collaboration will leverage the combined strengths of RITES and DMRC, enhancing their business capabilities and expanding their reach.

This is the Navratna company’s second major partnership this week. On Wednesday, RITES signed an MoU with Eastern Railway's Andal Diesel Shed for the maintenance of diesel locomotives.

Price Action: Rites’ share price was up 3.74% to trade at ₹704.80 as the markets opened on Friday.

Read Next: In Close Shave, ‘Indian Warren Buffett’ Cut Stake In Edelweiss Before Regulatory Action