SPML Infra Ltd announced on Saturday (January 3) that it has received intimation of a ₹159 crore surety bond limit from a reputed insurer registered with the Insurance Regulatory and Development Authority of India (IRDAI). The bond limit will enable the infrastructure development firm to enhance its participation in tenders and provide security in place of bank guarantees for contract awards as required. This strategic financial enhancement provides the company with greater financial flexibility and a competitive edge in bidding for new projects by freeing up capital that might otherwise be tied up in traditional bank guarantees.
In a separate development, SPML Infra secured an arbitration award of ₹21.61 crore from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) on December 31, 2024. The award, which is in favour of the company, is subject to the terms and conditions stipulated in the arbitration proceedings. This victory reinforces the company's financial standing and operational credibility, demonstrating its ability to successfully navigate and resolve contractual disputes.
These latest developments build upon SPML Infra's recent achievements, including securing a ₹207.38 crore project in December 2024 from the Public Health Engineering Department (PHED), Jhalawar, Rajasthan. The award was secured in a joint venture with Shree Hari Infraprojects Private Ltd under the Jal Jeevan Mission (JJM) as part of the Nonera Water Supply Project, aimed at strengthening water supply infrastructure across the Kota and Bundi region in Rajasthan. This project involves construction and long-term operation and maintenance of water treatment plants and extensive pipeline networks.
The contract covers construction and operational work, along with 10 years of operations and maintenance. Under Package-1, the scope includes execution, testing and commissioning of three intake wells and three water treatment plants with a combined capacity of 118 MLD. It also includes three clear water reservoirs with a total capacity of 16.1 million litres and 52.6 km of pipelines ranging from 600 mm to 1300 mm diameter, supported by PLC and SCADA systems. The project will provide functional household tap connections and clean drinking water facilities to over 1.03 million people.
Despite these positive operational and financial developments, market sentiment towards SPML Infra's stock showed a slight dip. On Friday (January 2), shares of SPML Infra Ltd ended at ₹187.00, down by ₹3.29, or 1.73%, on the BSE. This divergence between fundamental progress and short-term stock performance reflects typical market dynamics where positive corporate developments may take time to translate into stock price appreciation.
