Shares of RITES shot up on Wednesday morning going up over 6% to hit an intraday high of ₹319.95.

What Happened: RITES has entered into a Memorandum of Understanding (MoU) with Etihad Rail, the UAE’s national rail network operator. The partnership aims to collaborate on railway and infrastructure services in the UAE and the wider region.

The collaboration aims to explore opportunities for supply/leasing of rolling stock, consultancy and project management for railway projects, and services such as repairing of rolling stock and operation & maintenance of railway infrastructure.

The partnership also includes a capacity analysis of rail corridors in the UAE and nearby regions to improve efficiency, streamline logistics, and enhance trade routes. Both parties will also explore advanced IT solutions for train operations & passenger management and technical inputs on maintenance practices.

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The MoU was signed on October 8, 2024, by Rahul Mithal, chairman and managing director of RITES, and Shadi Malak, CEO of Etihad Rail, at the Global Rail Transport Infrastructure Exhibition & Conference in Abu Dhabi.

This strategic partnership comes at a time when RITES Ltd. has been bagging new export orders. Earlier this month, the company secured a $4.28 million international contract from Tsiko Africa Logistics for the supply and commissioning of overhauled in-service cape gauge diesel-electric locomotive. Additionally, RITES also received a $5.4 million order from Ntokoto Rail Holdings for supplying and commissioning overhauled locomotives on Monday.

Furthermore, the company has seen a surge in interest from Foreign Institutional Investors (FIIs), who increased their stake in the company from 2.73% to 3.19% in just 10 days, as per the latest shareholding data.

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