New Delhi: IRCON International Ltd. and RITES Ltd. announced on Thursday, October 12, that they have been granted the prestigious “Navratna” status by the Government of India. In light of this achievement, both stocks experienced a positive opening on Friday, registering gains of over 4% following the announcement.
Classified as Navratna, a state-run company holds the prerogative to make investments up to Rs 1,000 crore without the explicit need for government approval. IRCON and RITES have been granted the prestigious “Navratna” status, making them the 15th and 16th CPSEs to achieve this milestone.
The other 14 companies that have been granted this status include Bharat Electronics, CONCOR, Engineers India, Hindustan Aeronautics, MTNL, NALCO, NBCC, NLC India, Oil India, PFC, Rashtriya Ispat Nigam, REC, and Shipping Corporation of India.
To attain the prestigious “Navratna” status, a company must exhibit consistent net profits of over Rs 5,000 crore for three consecutive years, along with maintaining an average annual turnover of Rs 25,000 crore for three years or sustaining an average annual net worth exceeding Rs 15,000 crore for three years.
IRCON International specializes in providing professional infrastructure construction services, encompassing a wide range of projects such as roads, highways, bridges, airports, mass rapid transit systems, and commercial buildings. On the contrary, RITES specializes in offering services such as transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance, as well as other related services.
Shares of IRCON International have experienced a remarkable surge in 2023, skyrocketing by an impressive 128% as of October 12's closing bell. Additionally, the shares of RITES have displayed noteworthy growth, climbing approximately 40% thus far this year.
