Shares of VA Tech Wabag Ltd surged over 8% in intraday trade on Tuesday October 27, breaking an eight-session losing streak after the company announced an order win from Reliance Industries. The company secured an order worth over ₹1,000 crore from Reliance Industries Ltd to build a desalination and remineralisation plant in Jamnagar, Gujarat, as per a regulatory filing.
The firm classifies domestic orders valued above ₹1,000 crore as "mega" orders.“This mega order reinforces RIL’s confidence in WABAG’s proven technology and execution record,” S Natrajan, Vice President and Head of Sales and Marketing at the company, said.
The order is to be executed in phases over 25 months. The desalination plant will have a capacity of 8,400 m3/hr, expandable to 12,600 m3/hr . The remineralisation plant will have a capacity of 3,000 m3/hr. As per the order, the company will design, engineer, supply, install, pre-commission and commission the desalination plant, and carry out its Performance Guarantee Test Run , it said.
PGTR is a test conducted after a facility is commissioned to check whether it meets agreed standards for capacity, efficiency and environmental performance. The desalination plant will use clarifiers, dissolved air flotation filters and an ultrafiltration system to treat seawater before passing it through seawater and brackish water reverse osmosis systems.
It will also include chemical dosing, backwash, treated water storage and brine disposal systems, according to the filing. The remineralisation plant will include limestone filters, a lime handling system, carbon dioxide storage and dosing facilities, along with water storage and pumping systems.
Second Reliance order in two monthsThe win follows an earlier contract from the same client. On Monday, September 7, when it had won a “medium” order from RIL for an effluent treatment plant in Jamnagar. The company classifies domestic orders in the ₹100 crore to ₹250 crore range as "medium".
That contract covered the design, engineering, manufacturing, supply, erection and commissioning of the ETP at the Dhirubhai Ambani Green Energy Giga Complex, Jamnagar. Market ReactionThe company’s shares were trading 8.4% higher 1,851.3 apiece as of 11.55am on Tuesday.
The stock has risen 39.98% in the year-to-date period and gained a further 31.35% over the trailing 12 months. The stock is trading at a 25.9% decline from its 52-week high of ₹2,319, which it hit on September 11 this year.