VA Tech Wabag Surges 5% Following ₹1,000 Crore Order Award

VA Tech Wabag Secures New Contract from Chennai Metropolitan Water Supply and Sewerage Board

On March 16, VA Tech Wabag's stock price rose as much as 5% to ₹1,290 per share in Monday's trading session following the company's win of a new contract from the Chennai Metropolitan Water Supply and Sewerage Board. The stock opened at ₹1,270, compared to its previous close of ₹1,227.60 on Friday, and climbed to a day-high of ₹1,290.

The company secured a ₹1,000 crore "mega" contract, funded by the Asian Development Bank, to develop a looped transmission network under the Chennai Climate Resilient Water Security and Sewerage Project for Greater Chennai City. The project aims to establish a city-wide water grid platform for Chennai, enabling flexible water routing, improved pressure management, and greater operational reliability.

VA Tech Wabag's total order book has surpassed ₹16,300 crore following this win. The project is significant given Chennai's long-standing challenges of water scarcity, uneven distribution, and periodic supply disruptions further intensified by climate variability and the city's dependence on distant surface water sources.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The project scope includes the development of bulk transmission pipelines, feeder mains, pumping stations, underground tanks, and integration with the central SCADA system, to be completed within 54 months, followed by 10 years of operation and maintenance.

Key Figures:

• ₹1,290: Day-high stock price
• ₹1,270: Opening stock price
• ₹1,227.60: Previous close
• ₹1,000 crore: Contract value
• ₹16,300 crore: Total order book
• 8.03%: Rekha Jhunjhunwala's stake in VA Tech Wabag
• 50,00,000: Number of shares owned by Rekha Jhunjhunwala
• 284%: Three-year returns
• 394%: Five-year returns