Water Treatment Major Hits 52-Week High on Winning Rs 420 Crore Contract

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Water Treatment Major Hits 52-Week High on Winning Rs 420 Crore Contract
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the water treatment company Va Tech Wabag (NS: VATE ) surged 4.84% on Wednesday and hit a new 52-week high of Rs 503.2 apiece in the session.

The stock extended its upward trend for the sixth day in a row and has jumped 10.5% in this period.

The small-cap stock recorded a fresh 52-week high on Wednesday after the company won a contract worth Rs 420 crore from CIDCO, Maharashtra to design, build and operate a Water Treatment Plant (WTP) in Raigad district.

The water treatment company will have to build a WTP having a capacity of 270 Million Litres per Day (MLD) at Jite in Raigad for the City and Industrial Development Corporation of Maharashtra Limited (CIDCO).

As per the details of the work order, the project aims at catering for the future water demand of Navi Mumbai.

According to Va Tech Wabag, water from the Hetwane dam will be treated at the proposed WTP (of capacity 270 MLD) and pumped to the existing Master Balancing Reservoir (MBR) at Vihal for further distribution.

The ‘Design, Engineering, Supply, Construction, Installation and Commissioning’ of the plant, along with the clear water pumping station will be done in 42 months, followed by the Operation & Maintenance (O&M) for 15 years.

“This is an important and strategic success for us, as we foray back into the DBO space in Maharashtra. This project was won against tough competition based on our technical superiority and competitiveness and we are thankful to our client for the confidence they have reposed in us,” said Shailesh Kumar, the CEO of VA Tech Wabag, India Cluster.

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