Shares of IRCON surged over 5 percent and RITES saw a jump of 4 per cent on the NSE on October 13.
IRCON International Ltd and RITES Ltd officially informed the stock exchanges on Thursday that the Government of India has granted them the “Navratna” status. The elevation in their status now positions IRCON and RITES as the 15th and 16th Central Public Sector Enterprises (CPSEs) to attain this esteemed recognition.
On Friday, the share price of IRCON surged to more than 6.66 per cent to Rs 144.95 and RITES saw a jump of 6 per cent to Rs 502.05 on the National Stock Exchange (NSE).
Prior to this the Indian government has conferred the "Navratna" status upon fourteen other companies, which are Bharat Electronics, CONCOR, Engineers India, Hindustan Aeronautics, MTNL, NALCO, NBCC, NLC India, NMDC Limited, Rashtriya Ispat Nigam, Shipping Corporation of India, RVNL, ONGC Videsh Ltd, and Rashtriya Chemicals & Fertilizers Limited.
A company must demonstrate a consistent net profit exceeding Rs 5,000 crore for three consecutive years to qualify for the ‘Navratna’ status. It should also maintain an average annual turnover of at least Rs 25,000 crore over the same period, or maintain an average annual net worth exceeding Rs 15,000 crore for three years.
IRCON International specializes in infrastructure construction services, including projects such as roads, highways, bridges, airports, mass rapid transit systems, and commercial buildings. It has a market capitalization of around Rs 13,660 crore.
RITES provides transport infrastructure consultancy, railway inspection, rolling stock leasing, maintenance, and associated services within the transportation sector.
On a year-to-date basis, the share prices of RITES have jumped to more than 40 percent. In the case of IRCON international the share price has zoomed to more than 140 percent on NSE.