New Delhi: RITES Ltd has received acceptance of its offer from South Africa-based Volantis Asset Finance (Pty) Ltd for the supply and commissioning of 4,000 HP Cape Gauge diesel-electric locomotives. The company disclosed the development through a regulatory filing dated July 6, 2026.
The proposed contract is valued at USD 35.82 million, marking a significant international business opportunity for the public sector engineering and transport consultancy company.
The order highlights RITES’ growing presence in global railway markets, particularly in Africa, where the company has been expanding its railway equipment supply and infrastructure service operations.
Contract to Be Finalised After Due Diligence Process
According to RITES, the acceptance received from Volantis Asset Finance is currently subject to due diligence by both parties. The formal contract agreement will be signed after completion of the required verification process.
The company clarified that the project will be officially added to its order book only after the execution of the final contract.
Until the agreement is signed, the order remains an accepted offer and not a confirmed order entry in RITES’ official records.
Project Details: Supply of 4,000 HP Cape Gauge Locomotives
Under the proposed agreement, RITES will be responsible for the supply and commissioning of 4,000 HP Cape Gauge diesel-electric locomotives for Volantis Asset Finance (Pty) Ltd in South Africa.
The project is expected to be completed within 20 months from the date of execution of the contract.
Key Highlights of the Order:
- Client: Volantis Asset Finance (Pty) Ltd, South Africa
- Project: Supply and commissioning of 4,000 HP Cape Gauge diesel-electric locomotives
- Order Value: USD 35.82 million
- Execution Period: 20 months
- Contract Type: International order
- Related Party Transaction: No
- Promoter Interest: None
RITES Expands Global Railway Business Presence
The latest development strengthens RITES’ international business portfolio. The company has been actively involved in railway consultancy, transportation infrastructure projects, and supply of railway equipment across several countries.
The successful execution of this locomotive project could help RITES enhance its footprint in African railway markets and create opportunities for future overseas contracts.The company’s focus on international railway projects supports its long-term strategy of increasing revenue from global markets.
No Promoter Interest or Related Party Transaction
In its regulatory disclosure to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), RITES confirmed that:
- There is no promoter or promoter group interest in Volantis Asset Finance (Pty) Ltd.
- The transaction does not fall under the category of a related-party transaction.
The company also reiterated that the order will be reflected in the official order book only after the signing of the contract agreement.
RITES Share Price Rises After International Order Announcement
Shares of RITES witnessed strong buying interest after the company announced the acceptance of the South Africa locomotive order.
The stock surged nearly 9% to ₹235.95 on the BSE during Tuesday’s intra-day trading, supported by heavy trading volumes.
Over the past one month, RITES shares gained around 16%, outperforming the BSE Sensex, which rose approximately 7% during the same period.
The stock had touched a 52-week high of ₹287 on July 7, 2025.
At around 10:15 AM, RITES shares were trading about 8% higher at ₹233.20, compared with a 0.27% rise in the BSE Sensex. Trading activity also increased significantly, with a combined 26.07 million equity shares changing hands on the NSE and BSE.
About RITES Ltd
RITES Limited is a leading Indian public sector enterprise under the Ministry of Railways, specializing in transport consultancy, engineering, and project management services. It operates across railway infrastructure, urban transport, ports, highways, and international engineering consultancy. With a diversified portfolio and strong government backing, RITES plays a key role in India’s infrastructure development and global engineering exports.
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