Shares of Deep Industries rose 17% to hit an all-time high on Monday morning after winning a huge contract worth ₹1,402 crore from ONGC.

What Happened: Deep Industries said it received the contract for the production enhancement operations in the mature fields of ONGC’s Rajahmundry Asset. The contract will span 15 years, the company said in its regulatory filing. 

Deep Industries said this is the largest order it has received to date and more than doubled its order book. The company had an order book of ₹1,246 crore till June 30, 2024. The order value is also almost half of the company's market cap value of ₹2,892 crore. 

Production Enhancement Contracts (PEC) are done to increase the production of hydrocarbons from the ageing, depleted and mature fields typically spanning around 15 years beyond the original life of the asset. 

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At Rajahmundry asset, ONGC is looking to further develop hydrocarbon reserves from the Contract Areas in a way that improves current production and ultimate recovery of hydrocarbons, the company added. 

Deep Industries has been engaged in providing various oil & gas support services since its inception in 1991. The company's portfolio includes natural gas compression, natural gas dehydration, workover and drilling rigs services, and integrated project, management services.

Price Action: Shares of Deep Industries rose 17.52% to hit its all-time high of ₹466.80 on Monday morning. 

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