Rakesh Junjhunwala-backed Va Tech Wabag shares surge amid new order from Russia; stock up 236% in a year

On the back of a new order from a Russian company, the shares of Va Tech Wabag surged around 3 per cent to Rs 404.25 per share, a day’s high level, on the BSE intraday trade on Tuesday. The water treatment and management company’s shares have spurted over 236 per cent in the last one year. VA Tech Wabag, on September 29, 2020, had allotted 7.5 million shares to investors, including Jhunjhunwala at a price of Rs 160 per share. 

As per the company’s filing to exchanges, “VA TECH WABAG (`WABAG'), a leading pure-play water technology Indian Multinational Group, consolidates its market position in the Oil& Gas sector further, by securing a breakthrough Engineering and Procurement (`EP') order worth 165 Million US Dollars (about 1,230 Crore) from Amur Gas Chemical Complex LLC., AGCC') in Russia.” 

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“AGCC is a joint venture of SIBUR Holding Russia and China Petroleum & Chemical Corporation (`Sinopec'), China. AGCC is set to become one of the world's largest basic polymer production facilities, the statement further read.

The company shall be the technology and system integrator for the Integrated Treatment Facilities (Waste Water Treatment unit) and deploy advanced technologies to treat wastewater streams. 

The facility will have a concentrate evaporator unit to maintain Zero Liquid Discharge (ZLD) and the sludge will be dewatered and dried. It will be designed to Recycle, Re-use the wastewater released from the petrochemical unit, substituting about 25 per cent of the raw water intake requirement, Wa Tech Wabag said in a statement on Monday.

An ace Investor Rakesh Jhunjhunwala’s wife Rekha held over an 8 per cent stake in the company, which is around 50 lakh shares with an investment of Rs 146.8 crore, as per the June-ended shareholding pattern available on the BSE.  

The investment of Rekha Jhunjhunwala jumped by over 110 per cent in around 10 months, after she subscribed to the company’s shares via preferential issue.