State-owned engineering consultancy company, RITES Limited, on Friday announced that its board will consider a bonus issue proposal in its 24 June meeting.

"A meeting of board of directors of the Company is scheduled to be held on Monday, June 24, 2019 inter alia to consider the proposal for issuance of bonus shares," the company said in a regulatory filing.

Shares of RITES Limited surged by over 6 percent to Rs 296.50 apiece in morning trade on Friday, following the announcement.

RITES is a Miniratna (Category-I) schedule 'A' Government of India enterprise, that was started in 1974 to provide consultancy services in the rail transport management to operators in India and abroad. It has diversified its services for other infrastructure like airports, ports and highways.

It made its market debut on 2 July 2018, listing at Rs 190 on BSE as against its issue price of Rs 185/share.

Indian stock market benchmark indices were trading lower in comparison. BSE's Sensex opened 22.28 points lower at 39,719.08, while NSE's Nifty 50 declined 16.60 points at 11,897.40. Losses in the two indices continued in the morning session as stocks of private lenders remained red.

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