RITES‘s share price shot up on Monday morning, going up around 13% to hit an intraday high of ₹754.30.

What Happened: The railway said its board of directors will consider issuing bonus shares for shareholders in its upcoming board meeting on July 31.

The company will also declare the financial results for the quarter ended June 30 after the meet, where the board will also consider a first interim dividend for FY25.

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Bonus shares are fully paid additional shares issued by a company to its existing shareholders, who do not have to incur any extra costs to receive them.

The number of bonus shares issued depends on the number of shares already held by shareholders. Previously, RITES issued a bonus on August 8, 2019, in a 1:4 ratio, as per BSE data.

Last week, the public sector firm said it bagged a letter of intent from the Directorate of Medical Education & Research, Mumbai, for the construction of a new government medical college. The project, valued at over ₹321 crore, involves building a facility in Amravati, Maharashtra, which will have 430 beds and the capacity to train 100 students.

The contract has been awarded on a turnkey basis and will be executed within a maximum of 90 months.

Price Action: RITES’s share price was up 12.86% to trade at ₹752.95 in early trade on Monday.

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