Shares of Welspun Enterprises Ltd. surged as much as 8% on Friday after the company received the Letter of Acceptance (LoA) from the BMC for a 2,000 MLD water treatment plant at Bhandup in suburban Mumbai, the company said in an exchange filing.
The total value of the order is said to be worth ₹4,123 crore. Welspun Enterprises had emerged as the lowest (L1) bidder for the said order earlier this month, based on its exchange announcement on February 7.
With this order, the company's outstanding order book is now at ₹12,650 crore, of which ₹9,750 crore is from the water sector and the rest is from the road sector. The order book also consists of ₹3,677 crore worth of O&M and asset replacement.
This project is to be designed and constructed within a period of 48 months and will be operated and maintained for 15 years thereafter.
The proposed water treatment plant, one of the largest in the world in terms of capacity, is located at BMC’s Bhandup Complex, which currently supplies drinking water to Mumbai City through existing Water Treatment Plants.
Currently, Welspun Enterprises is executing like the government's Jal Jeevan Mission in Uttar Pradesh covering around 2,500 villages and the 418 MLD waste water treatment facility at Dharavi.
"With the Bhandup WTP project, WEL has expanded its portfolio to encompass a comprehensive range of solutions across the entire water spectrum. The water sector continues to be one of the key focus areas for us and this order synergises well with our overall growth strategy," said Sandeep Garg, the company's Managing Director.
Shares of Welspun Enterprises are trading 5.4% higher at ₹331.70. The stock has risen 165% over the last 12 months.
First Published: Mar 1, 2024 9:35 AM IST
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