Rakesh Jhunjhunwala water treatment company's stock jumps 5% on bagging order for 50 MLD desalination project in Senegal

Shares of Rakesh Jhunjhunwala company catering to water management and supply segment surged nearly five per cent in Friday's intraday trade on bagging an order for 50 MLD desalination project in Senegal.  

"VA TECH WABAG (‘WABAG’), a leading pure-play water technology Indian Multinational Group, further enhanced its global position in the Desalination market, by securing a consortium Design, Build, Operate (‘DBO’) order, for the 50 MLD (expandable to 100 MLD) Mamelles Sea Water Desalination," said the company in regulatory filing on Friday. 

Reacting to the development, shares of Va Tech Wabag jumped 4.81% to Rs 262.45 per share around 10.40 am on the BSE on Friday. As on June 3, the counter has gained over 10% in the past one month, showed technical details of the stock. 

Rakesh Jhunjhunwala Portfolio 

Va Tech Wabag is one of the 34 stocks in Rakesh Jhunjhunwala's portfolio, as per March 2022 corporate filings.  

The billionaire investor, fondly also called Big Bull of the Indian stock market, holds 50 lakh shares aggregating to 8% stake in the water treatment company, as per the latest corporate filings.  

For the quarter ended March 3, 2022, Rakesh Jhunjhunwala and Associates publicly holds 34 stocks in its portfolio. The value of Rakesh Jhunjhunwala and Associates' portfolio has been peggeed over Rs 30,087.7 crore as on June 3, 2022, according to stock analysis portal trendlyne.com. 

About the Proejct 

Meanwhile, the scope of WABAG under this order will be Engineering & Procurement (‘EP’) and Operation & Maintenance (‘O&M’), which is worth about one-third of the consortium order value.  

The plant will be based on SWRO technology with very advanced compact systems, considering the availability of land and challenging terrain. The project is to be executed by WABAG in consortium with Toyota Tsusho Corporation (‘Toyota’), Japan and Eiffage Génie Civil, France (‘Eiffage’). WABAG will play the role of the Technology & System integrator, while Eiffage will be responsible for the construction work and Toyota will co-manage the project. 

This project which is being funded by Japan International Cooperation Agency  (‘JICA’) aims to provide a safe and stable water supply to the people of Senegal by ensuring a highly sustainable water source. The groundbreaking ceremony of this project was held in Dakar, Senegal and the commencement of construction of the plant was declared by the President of Senegal. 

"As the first large-scale seawater desalination plant in Senegal and the largest in West Africa upon completion, this project is expected to greatly improve the lives of the people by meeting the water needs of about one million Dakar residents, thereby contributing to sustainable development of the economy in Senegal," read a statement from the company.