Rekha Jhunjhunwala-Backed Small Cap Stock Jumps 11% After Winning Order In Saudi Arabia

VA Tech WABAG shares surged up over 11% to hit a new 52-week high of ₹737 on Monday morning.

What Happened: The company has landed a $33.5 million (around ₹265 crore) order for an industrial wastewater treatment plant at the Ras Tanura Refinery Project in Saudi Arabia. The order has been awarded the order by SEPCO III Electric Power Construction Corporation. The order involves the engineering and procurement of a 20 MLD Industrial Wastewater Treatment Plant (IWWTP) at the refinery complex.

WABAG will serve as the Process and Technology Contractor for the IWWTP, which is being developed by Miahona, a leading PPP developer and operator of water and wastewater projects in Saudi Arabia, for its off-taker Saudi Aramco, one of the world’s largest integrated oil and gas companies.

The order includes design, engineering, procurement, supply, and supervision of installation & commissioning of the IWWTP to treat a complex mix of effluents from the Desalter Effluent, Tank Farms, and other Oily Wastewater sumps in the refinery.

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“This is another key breakthrough for us in the Kingdom of Saudi Arabia. This order which is being delivered to Miahona and Saudi Aramco is a further testimony of Wabag's technology leadership in the Oil & Gas sector and enables us to further cement our presence in the Middle East Region,” said Sivakumar V, regional head of sales and marketing at WABAG. The project is expected to be completed over a 20-month period.

In September 2023, the company signed a memorandum of understanding (MoU) with Al Jomaih Energy and Water (AEW) to collaborate on various aspects, including engineering, procurement, and construction (EPC), project development, and feasibility assessments for potential water projects.

Price Action: Va Tech Wabag's share price was up 7.08% to trade at ₹708.65 shortly after market open on Monday. Rekha Jhunjhunwala owns an 8.04% stake in the company.

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