Patel Engineering surges 6% on bagging Maharashtra irrigation projects

Patel Engineering surges 6% on bagging irrigation projects

Shares of Patel Engineering surged 6 percent on April 27 after the company bagged an irrigation project from the Maharashtra water resources ministry.

At 10:17am, the shares were trading percent 3.9 higher at Rs 20.67 on the BSE. The stock has rallied close to 40 percent in the past one month.

The company, along with its joint venture partners, have received contracts for the Krishna Marathwada Irrigation Project – Lift Irrigation Scheme 01 and 02 from the water resources department of the Government of Maharashtra, the company said in a regulatory filing.

Patel Engineering being 51 percent partner in a JV in Scheme 01 Project and 60 percent partner in a JV in Scheme 02 Project, its share in aggregate for these two projects is Rs 451.28 crore, it said.

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The total value of contracts is Rs 841 crore and the order is for investigation, design, construction, testing, commissioning of works comprising civil and allied works under the lift irrigation Scheme 1 and Scheme 2 of the Krishna Marathwada Irrigation Project, Osmanabad, Maharashtra.

Patel Engineering is a civil construction company which specialises in hydropower and irrigation sector.

The shareholding pattern for the quarter ended December showed Kedia Securities, which is backed by marquee investor Vijay Kedia, owning 1.29 percent stake in Patel Engineering under public shareholders.

Promoters and domestic institutional investors have been trimming their stake in the engineering company, while retail investors lapping up the stock.