RITES Secures Major International Order from Ntokoto Rail Holdings

Key Takeaways from RITES Major Order Win: 

• RITES Limited received a Letter of Acceptance for a major order from Ntokoto Rail Holdings on October 7.
• The contract includes the supply and commissioning of overhauled Cape Gauge ALCO Diesel Electric Locomotives.
• The project features new bogies, traction motors, and control systems, along with one year of on-site warranty support.
• The total value of the order is approximately 5.40 million USD, with completion expected within six months.

The order involves the supply and commissioning of overhauled Cape Gauge ALCO Diesel Electric Locomotives, which will be fitted with new bogies, traction motors, and control systems. 

The total value of the contract is approximately 5.40 million USD, and it is expected to be completed within six months. 

About RITES Limited:

RITES Limited, a Navratna and Schedule 'A' Central Public Sector Enterprise under the Ministry of Railways, was incorporated on April 26, 1974. It is a multidisciplinary engineering and consultancy organisation that offers a wide range of services from concept to commissioning in transport infrastructure and related technologies. With its strong market capitalisation, RITES ranks among the top 500 listed companies in India, reflecting its commitment to high-quality solutions delivered by a skilled workforce.

Over its nearly five-decade history, RITES has become a preferred partner for clients in more than 55 countries across Asia, Africa, Latin America, and the Middle East. The company serves as the export arm of Indian Railways, providing various rolling stock, including locomotives and coaches. RITES is dedicated to sustainable mobility, successfully executing over 5,000 projects, including major initiatives like the Bogibeel Bridge in Assam, metro works in Ahmedabad, and the Pir Panjal railway tunnel in Jammu & Kashmir, showcasing its ability to deliver complex infrastructure solutions.

Key Takeaways from Olectra Greentech Limited's Clarification:

• Olectra Greentech Limited participated in a bidding process for the supply of 327 electric buses to Himachal Pradesh, which includes 297 units of 9-meter buses and 30 units of 12-meter buses.
• The technical bids were opened on August 24, 2024, and the price bids on October 4, 2024, but the Himachal Pradesh State Road Transport Corporation (HRTC) has not yet declared the least quoted (L-1) bidder.
• Olectra clarified that no negotiations can begin until HRTC declares the L-1 bidder, and being the L-1 bidder does not guarantee an automatic award of the contract.
• Olectra has made all required disclosures in compliance with SEBI (LODR) regulations and is unaware of any undisclosed information affecting its recent stock trading activity.

The Himachal Pradesh State Road Transport Corporation (HRTC) issued two tenders for the outright sale of 297 units of 9-meter electric buses and 30 units of 12-meter electric buses. As an Original Equipment Manufacturer (OEM) of electric buses, Olectra participated in the bidding process, submitting both price and technical bids. The technical bids were opened on August 24, 2024, followed by the opening of price bids on October 4, 2024. The company is currently awaiting communication from HRTC regarding the next steps and the declaration of the least quoted (L-1) bidder.

In response to enquiries about negotiations, Olectra stated that since HRTC has not yet declared the L-1 bidder, no negotiations can commence at this time. The company emphasised that it is unaware of any undisclosed information that could explain recent trading movements and has consistently complied with SEBI (LODR) Regulations, making timely disclosures.

Olectra also noted that even if it is declared the L-1 bidder, this status does not guarantee an award of the Letter of Award (LOA) or contract unless price negotiations are commercially viable for both parties. The company maintains a significant order book of approximately 10,000 buses as of June 30, 2024; therefore, the potential order for 327 buses is not expected to have a material impact on its overall business.

About Olectra Greentech Limited 

Olectra Greentech Limited is an India-based company that focuses on the composite polymer insulator and electric vehicle business. There are three distinct divisions, namely: the Insulator, e-bus, and e-truck divisions. As far as the e-buses are concerned, the company has on offer the K9 (12-meter), K7 (9-meter), and K6 (7-meter), all available for long-distance use with options in seating capacity. The buses are put to use by Olectra in Puri, among other cities. It also makes transmission and distribution composite insulators. The company has more than 1,000 electric buses running commercially in India.

Key Takeaways from the Acquisition

• HEG Limited has invested Rs 248.62 crore to acquire an 8.23% stake in GrafTech International Ltd., a leading global manufacturer of graphite electrodes.
• The investment was made through secondary market transactions under the Overseas Portfolio Investment scheme.
• GrafTech’s business is directly aligned with HEG’s core operations, focusing on graphite electrode production for steel and metal industries.

This investment is worth Rs 248.62 crore and has been filed with the United States Securities and Exchange Commission under the Securities Exchange Act of 1934.

GrafTech International Ltd. is a globally recognised manufacturer of graphite electrodes, which is crucial for electric arc furnace steel production and other metal processing. The market cap of the company is 416.61 million USD. HEG’s investment reflects its strategic interest in expanding its portfolio through international investments. 

In its regulatory filing with BSE and NSE, HEG also emphasised that any further purchases of GrafTech shares would require board approval.

About GrafTech International Limited

GrafTech International Limited is a leading manufacturer of premium graphite electrode products, vital for producing electric arc furnace steel and other metals. The company operates low-cost, ultra-high-power graphite electrode manufacturing facilities, including three of the largest in the world. As the only major producer with substantial vertical integration into petroleum needle coke, GrafTech benefits from enhanced product quality and cost efficiency.

About HEG Limited

HEG Limited is a leading Indian manufacturer and exporter of graphite electrodes, operating the world's largest single-site integrated graphite electrode plant. The company makes electrodes of Ultra-High Power (UHP), High Power (HP) and Regular Power (RP), with different lengths and diameters. The HEG specializes in Graphite Electrodes, Power Division, and carbon specialty products, making it a prime player in the highly competitive sector characterized by high-tech and entry barriers. The notable fact is that HEG has been the last major entrant into the global graphite electrode market and came into inception only in 1976.

Key Takeaways from ICICI Lombard Acquisition:

• ICICI Lombard has acquired a 0.08% stake in Axis Bank, totaling Rs 2.36 billion.
• The acquisition was completed on October 7, 2024, during market hours.
• The investment was made in cash and does not involve related party transactions.
• Axis Bank, founded in 1993, is the third-largest private bank in India, with a turnover of Rs 1,379.89 billion for 2023-24.

This acquisition is part of ICICI Lombard's regular business activities and does not involve any related party transactions. The purchase was made in cash during market hours on October 7, 2024.

Axis Bank, incorporated on December 3, 1993, is the third-largest private bank in India and provides a range of financial services across various sectors. The bank reported a turnover of Rs 1,379.89 billion for the financial year 2023-24.

About Axis Bank Limited:

Axis Bank is the third largest private sector bank in India, providing a wide range of financial services to various customer groups, including large and mid-sized companies, MSMEs, agriculture, and retail businesses. It began operations in 1994 as one of the first new generation private banks. The bank was established in 1993 with support from several organizations, including the Specified Undertaking of Unit Trust of India (SUUTI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), and other insurance companies. Over time, the shareholding of Unit Trust of India was transferred to SUUTI, which was created in 2003. The other insurance companies have since been reclassified from promoters to public shareholders.

About ICICI Lombard General Insurance Company Limited:

ICICI Lombard General Insurance Company Limited is committed to creating a holistic and equitable society through its corporate social responsibility (CSR) initiatives. The company focuses on health, wellness, sports, and road safety, addressing the social, economic, and environmental needs of communities. Their projects are aligned with the United Nations Sustainable Development Goals and aim to improve the livelihoods of people, ensuring that they can lead meaningful lives.

Among its key initiatives is the "Ride to Safety" program, which promotes road safety awareness among two-wheeler riders, particularly targeting lower-middle-class families. The "Niranjali" program aims to provide safe drinking water in schools, while "Caring Hands," initiated in 2011, involves employee-led eye check-up camps for municipal school students. Additionally, ICICI Lombard is working to equip rural health centers with necessary medical equipment and has installed solar panels to promote renewable energy.