Shares of VA Tech WABAG were surging on Thursday morning after the company bagged a major order.
What Happened: The Chennai-based firm announced on Thursday that it has bagged a consortium order from Societe Nationale D’exploitation Et De Distribution Des Eaux (SONEDE), Tunisia, valued at around ₹555 crore (€63 million). The project’s funding comes from the French Development Agency (AFD) and the European Investment Bank (BEI), and it involves the design, build, and operation of the 345 MLD Bejaoua Drinking Water Treatment Plant.
The project is expected to be carried out over 30 months, followed by a year of operation and maintenance. As part of this order, WABAG will handle the engineering, procurement, and operation and maintenance (O&M).
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While WABAG will spearhead the consortium, its partner Entreprise Gloulou Mohamed et Salem (EGMS) will be tasked with all civil works.
Expressing his gratitude for SONEDE’s continued faith in the firm, Guhan Kandasamy, Head of Marketing – Africa at WABAG, stated, “WABAG with this large water treatment project continues its contribution to water security in the African continent.”
The company has a two-decade-long association with SONEDE. Rekha Jhunjhunwala owns an 8% stake in the company which is worth around ₹250 crore.
Price Action: WABAG’s share price was up 5.90% to trade at ₹506.05 in the morning hours of trading on Thursday.
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