VA Tech Wabag (WABAG) shares gained close to 8 percent on Friday, March 21, early during trade, after notifying of a non-binding term sheet it signed to establish a dedicated Municipal Platform focused on capital projects in the municipal water sector. As of 11:00 am, the shares of VA Tech Wabag were trading at Rs 1,493, a gain of 7.94 percent.
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The platform will commit up to $100 million in equity investment over a 3 to 5 years of time period and will be developed in collaboration with an Investor Consortium, including Norfund, the Norwegian government’s investment fund, along with two other international investors.
As the Technical Partner, WABAG will provide EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) services while making a minority investment in line with its asset-light strategy. The platform aims to enhance water infrastructure by leveraging the expertise of WABAG and its partners to support sustainable water management and economic development.
The term sheet outlines the framework for collaboration, marking an initial step toward formalising the partnership. The company stated that further updates would follow as definitive agreements are finalised.
In the exchange filing, S. Varadarajan, Whole-time Director & Chief Growth Officer reflected on the deal saying, "This step of signing the term-sheet with strong global partners to establish the Municipal platform underscores our commitment to addressing global water challenges by leveraging cutting-edge technology and expertise. This initiative reflects our asset-light strategy, emphasizing partnerships that combine WABAG’s technical excellence with the financial strengths of our collaborators to accelerate impactful and sustainable water solutions."
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