VA Tech Wabag soars 5% on securing repeat order worth $49 million from Nepal

In the last one year, VA Tech Wabag stock has more than doubled investors' money, rising around 114 percent. In comparison, the benchmark Nifty 50 gained around 19.6 percent during this period.

Shares of VA Tech climbed over 5 percent on May 13 after the company announced that it had secured a repeat order of about $49 million from Kathmandu Upatyaka Khanepani Ltd (KUKL), funded by the Asian Development Bank (ADB).

The order entails design, build, operate (DBO), towards three Waste Water Treatment Plants (WWTP) in Nepal at Sallaghari, Kodku and Dhobighat, the company informed.

These plants will treat about 69 MLD of Waste Water, and is expected to be completed over 24 months, followed by a 5-year operation and maintenance (O&M), VA Tech said in its regulatory filing.

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"These plants when complete, will reduce ingression of untreated Waste Water into the Bagmati, Manohara and Hanumante rivers, thereby restoring the water quality and improving the whole eco-system," VA Tech added.

As part of this project, green fuel (Biogas) will be generated through activated sludge treatment, producing green energy which will be captively used in operation of the WWTPs, thereby reducing green house gas (GHG) emissions and optimising the cost of operations, the company further said.

Arvind Dullu, Regional Business Head – SAARC and South East Asia, said, "This order further strengthens WABAG’s foothold in Nepal and the South Asian region.”

At 1:07 pm, VA Tech Wabag shares were trading 4.5 percent higher at Rs 904.30 on the National Stock Exchange (NSE). In the last one year, the stock has more than doubled investors' money, rising around 114 percent. In comparison, the benchmark Nifty 50 gained around 19.6 percent during this period.

So far in the day, around 12 lakh VA Tech Wabag shares changed hands on BSE and NSE combined, compared to the 1-month average trading volume of 6 lakh shares. The latest sharp uptick pushed the company's market capitalisation (m-cap) to above Rs 5,619 crore.

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In the week gone by, the company said it had secured an order to set up a 36 million litre per day wastewater treatment plant in Tunisia. The French Development Agency, the European Investment Bank and the European Union are funding the project which is being headed by Wabag.

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