VA Tech Wabag shares jump nearly 6% on Rs 4,400 crore project win

Va Tech Wabag

VA Tech Wabag share price gained nearly 6 percent in the early trade on March 31 after the company's joint venture secured an order worth Rs 4,400 crore.

Va Tech Wabag secured the 400 million litres per day (MLD) seawater reverse osmosis (SWRO) desalination project from Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) worth about Rs 4,400 crores.

The project is scheduled to be executed under the leadership of WABAG in a joint venture with Metito Overseas Limited.

This DBO order includes the scope of design, engineering, procurement, construction, installation, testing and commissioning of the 400 MLD SWRO desalination plant and the associated seawater intake system over a period of 42 months followed by 20 years of Operation & Maintenance (O&M), the company said in its press release.

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The desalination process will include Lamella Clarifiers, Dissolved Air Flotation System, Gravity Dual Media Filters followed by Reverse Osmosis and Re-mineralization to produce clean drinking water which will be further distributed by CMWSSB to the residents of South Chennai.

This project is a landmark project for Chennai and India since this project when completed, will be the Largest Desalination plant in the South East Asian Region, the company said.

“This is historically the largest ever order for Wabag. I’m extremely happy that we have been awarded this massive, prestigious and important Desalination plant order in Chennai from our trusted customer CMWSSB with whom our association spans over 2 decades now," said Shailesh Kumar, CEO – India Cluster.

At 09:16 hrs Va Tech Wabag was quoting at Rs 354.45, up Rs 17.90, or 5.32 percent on the BSE.

The share touched a 52-week high of Rs 374.90 and a 52-week low of Rs 220 on December 12, 2022, and June 17, 2022, respectively.

Currently, it is trading 5.45 percent below its 52-week high and 61.11 percent above its 52-week low.