In a stock exchange filing, announcing the outcome of its board meeting on Monday, state-owned RTES informed the approval of issuance of bonus shares in the ratio of 1:4. This means that for every 4 shares held by a shareholder, one bonus share will be issued. The decision is subject to shareholders' approval.
"The Board of Directors of the company at their meeting held on Monday, 24th June, 2019, have approved and recommended the issuance of fully paid up bonus shares in the ratio of 1:4 (i.e. 1 (one) fully paid up equity share for every 4 (four) fully paid up equity shares held, subject to the shareholders'' approval in the ensuing Annual General Meeting," the company said in its filing.
Shares of RITES Limited have been swinging between gains and losses after the announcement. It touched an intraday high and low of Rs 289.60 and Rs 278.10 respectively.
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.