VA Tech Wabag shares zoom over 6% on securing order worth $49 million in Nepal

In a filing, VA Tech Wabag informed the stock exchanges about securing a repeat order from Kathmandu Upatyaka Khanepani Limited (KUKL), with funding from the Asian Development Bank (ADB).

After the announcement, shares of VA Tech Wabag Ltd gained as much as 6.26% to an intraday high of ₹919.9 apiece on the NSE. However, the stock pared some of its early gains to trade at ₹905 apiece, up 4.54%, on the NSE at 1:25 pm.

The company said that the order involves the design, build, operate (DBO) of three wastewater treatment plants in Nepal. These plants aim to treat around 69 million litres per day (MLD) of wastewater. The project is slated for completion within 24 months, followed by a 5-year operation and maintenance period.

The leading water treatment solutions provider said that on completion, these plants will reduce the influx of untreated wastewater into Nepal’s Bagmati, Manohara and Hanumante rivers, consequently restoring water quality.

As a component of this initiative, green fuel (biogas) will also be produced through activated sludge treatment, providing green energy for captive use in the operation of the wastewater treatment plants. This will reduce greenhouse gas emissions and optimise operating costs.

Commenting on the new order, Arvind Dullu, regional business head of Wabag, SAARC and South East Asia, said, “This order further strengthens Wabag’s foothold in Nepal and the South Asian region.”

WABAG is a specialised water technology company, offering a range of technologies and services for total water solutions in both municipal and industrial sectors. The company has a presence in over 25 countries across four continents.