VA Tech Wabag shares experienced significant gains after the company announced securing a ₹1,000 crore order from Reliance Industries (RIL) for a desalination plant project at Jamnagar, Gujarat. According to the latest regulatory filing, the contract encompasses the complete lifecycle of the project, including design, engineering, supply, installation, pre-commissioning, commissioning, and performance guarantee test run (PGTR). The company classifies domestic orders valued above ₹1,000 crore as 'mega' orders, making this a significant milestone for the water treatment specialist. As per CNBC TV18, the stock was trading 8.4% higher at ₹1,851.3 as of 11:55am on Tuesday, breaking an eight-session losing streak.
The comprehensive contract covers the entire project lifecycle from initial design through final commissioning, as reported by the regulatory filing. The desalination plant will have a capacity of 8,400 m³/hr, expandable to 12,600 m³/hr (302 MLD), while the remineralisation plant will have a capacity of 3,000 m³/hr. The order is to be executed in phases over 25 months, with the desalination plant utilizing clarifiers, dissolved air flotation filters, ultrafiltration systems, and reverse osmosis systems for seawater treatment. The remineralisation plant will include limestone filters, lime handling systems, carbon dioxide storage and dosing facilities, along with water storage and pumping systems. The desalination plant will also feature chemical dosing, backwash, treated water storage and brine disposal systems, according to the filing.
The contract award strengthens the partnership between VA Tech Wabag and Reliance Industries for infrastructure development at Jamnagar, Gujarat. S Natrajan, Vice President and Head of Sales and Marketing at the company, stated that "This mega order reinforces RIL's confidence in WABAG's proven technology and execution record." This represents the second Reliance order in two months, following a medium order worth ₹100-250 crore for an effluent treatment plant at the Dhirubhai Ambani Green Energy Giga Complex on September 7. The PGTR component ensures the plant meets specified operational standards before handover to RIL, with the test conducted after facility commissioning to check agreed standards for capacity, efficiency and environmental performance.
VA Tech Wabag shares surged over 8% in intraday trade on Tuesday October 27, breaking an eight-session losing streak after the major contract announcement. As per CNBC TV18, the stock was trading 8.4% higher at ₹1,851.3 as of 11:55am on Tuesday. The company's shares have risen 39.98% in the year-to-date period and gained a further 31.35% over the trailing 12 months. However, the stock is currently trading at a 25.9% decline from its 52-week high of ₹2,319, which it hit on September 11 this year. The latest surge follows the company's earlier contract win from RIL on Monday, September 7, for a medium order covering design, engineering, manufacturing, supply, erection and commissioning of an effluent treatment plant at the Dhirubhai Ambani Green Energy Giga Complex.
