VA Tech Wabag soars 7% as consortium wins Rs 1500-cr order from Petronas

NEW DELHI: Shares VA Tech Wabag surged over 7 per cent in trade on Thursday after the company informed stock exchanges that it, along with its consortium partner Muhibbah Engineering (M), has bagged a contract worth Rs 1,500 crore from Malaysia's Petronas.

The stock rose 7.55 per cent to hit an intraday high of Rs 735.35 on BSE.

"This is our first integrated ETP in the oil and gas sector in Southeast Asia and it is expected to be a landmark project reference. We are happy to win this prestegious contract amid competition from international players," said Rajiv Mittal, MD and group CEO at VA Tech Wabag. ETP stands for effluent treatment plant.

The project was awarded by PRPC Utilities and Facilities, a subsidiary of Petronas Group of companies, and it form a part of the RAPID complex at Pengerang, Johar, in southern Malaysia.

The purpose of the integrated ETP is to reduce the pollution in the aqueous effluents of the RAPID complex to below the regulatory discharge limits, the company said in the filing.

Year to date, the stock is down 2 per cent so far, compared with a 5 per cent drop in the BSE500 index.