Rites board approves share buyback of up to Rs 257 crore

Mumbai: State-run Rites said on Friday its board has approved the buyback of shares up to Rs 257 crore.

The transport infrastructure consultancy and engineering firm reported that its board approved buy-back of 96,98,113 shares at Rs 265 per share, translating into a total buyback amount not exceeding Rs 257 crore.

The company was listed in July 2018 and at present 72.02 per cent shares are held by the government and the balance is with the public and financial institutions.

“The company has strong financial fundamentals with debt-free balance sheet. This repurchase reflects management’s confidence in the company and growth prospects in the sectors and geographies where we operate,” said Rajeev Mehrotra, chairman and managing director of Rites.

The board has fixed September 30 as record date for the purpose of ascertaining the eligibility of shareholders for the buyback.

Ahead of the announcement, shares of RITES rose for the second straight session and climbed 1.11 per cent to Rs 255.25, while benchmark Sensex dropped 0.3 per cent to 38,845.82.