Welspun Enterprises Limited receives LOA for project

Welspun Enterprises Limited has received Letter of Acceptance dated May 27, 2022 from Brihanmumbai Municipal Corporation for the Project "Design, Build, Operation and Maintenance of 418 MLD Dharavi Wastewater Treatment Facility including 209 MLD Tertiary treatment facility under Mumbai Sewage Disposal Project, Stage II (Priority Works)". A Joint Venture led by Welspun Enterprises Limited will design, build, operate and maintain the Project for total consideration of Rs. 4,636 crore (inclusive of GST). The contract period for the subject work is 60 (Sixty) months for Design Build and further 15 years of operation and maintenance. The share of the Company in the said Joint Venture is 80%.

This award takes the outstanding order book of the Company to around Rs. 12,500 crore, of which ~Rs 6,500 crore is in the water sector and the balance ~Rs. 6,000 crore from road sector.

Expressing his happiness on the development, Mr. B. K. Goenka, Chairman, Welspun Group said, "This is the single highest value order so far for the Company in the most essential sector of Water Infrastructure in India. This Project for one of the largest waste water treatment facilities in India is a significant step in the direction of achieving Swachh Mumbai, Maharashtra and Bharat and we are extremely happy to be part of this journey. We have been working towards increasing our average order value. With this award our average contract value becomes more than Rs. 2,000 crore which gives us the scale and size to become further operationally efficient."

As on March 31, 2022, the Company's investments across various projects amounted to around Rs. 2,204 crore, with HAM Road Portfolio contributing ~Rs. 1,018 crore, Road BOT projects contributing ~Rs. 629 crore, Water BOT projects contributing ~ Rs. 92 crore, Oil & Gas projects contributing ~Rs 393 crore, and other assets contributing ~ Rs. 72 crore.

Shares of Welspun Enterprises Limited was last trading in BSE at Rs. 91.70 as compared to the previous close of Rs. 90.20. The total number of shares traded during the day was 14324 in over 677 trades.

The stock hit an intraday high of Rs. 93.25 and intraday low of 89.95. The net turnover during the day was Rs. 1311791.00.

Source : Equity Bulls

Keywords

WelspunEnterprises INE625G01013 LOA Project BMC