Why L&T's Share Price Is On The Rise Today

Larsen & Toubro’s share price was gaining on Wednesday as the firm won a major contract for a project in Saudi Arabia.

What Happened: Larsen & Toubro’s construction arm has secured an order worth up to ₹10,000 crore as the engineering, procurement and construction contractor for the establishment of renewable energy generation and utility systems for the Amaala project in Saudi Arabia’s Red Sea region.

Amaala, an ultra-luxury destination situated in the Prince Mohammed bin Salman Natural Reserve along Saudi Arabia's northwestern coast, spans an expansive 4155 square kilometers. The project is set to feature 25 hotels, 900 luxury residential units, high-end retail establishments, fine dining options, and wellness and recreational facilities.

See Also: How To Check Trident Techlabs IPO Allotment Status

Why It Matters: The EPC contract was awarded by a consortium comprising the United Arab Emirates’ Masdar, a clean energy powerhouse and French electricity utility EDF. The concession agreement for the fully integrated utility project has been signed, aligning with Amaala’s environmental ambitions.

Larsen & Toubro’s role will encompass the development of an optimized off-grid renewable energy system, featuring a 250 megawatt-peak solar photovoltaic plant and a battery energy storage system of 700 megawatt hour. The power systems will also include biofuel-based internal combustion engines, three gas insulated substations, high-voltage transmission lines and medium-voltage distribution networks.

On the water systems front, L&T will construct a reverse osmosis plant, six sewage treatment plants, marine works, tank farms, potable water networks, wastewater networks and treated sewage effluent networks.

Price Action: L&T’s share price was up 1.2% at ₹3,532 around noon on Wednesday.

Read Next: Facebook, Amazon, Apple, Microsoft, Netflix And Google Drastically Cut Hiring In India In 2023

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesNewsContractsMarketsMoversTrading IdeasL&T