Share prices of WPIL jumped 13 per cent to Rs 675 on the BSE in intra-day trade on Thursday, advancing 36 per cent in two days, after the company received a letter of intent (LoI) from Madhya Pradesh Jal Nigam.
“WPIL has received a letter of intent from Madhya Pradesh Jal Nigam for two projects for an aggregate amount of Rs 851.31 crore to be executed over 30 months,” the company said in a BSE filing on Wednesday.
At 02:45 pm, the stock was trading 7 per cent higher at Rs 641, as compared to a 1.2-per cent rise in the S&P BSE Sensex. Around 73,000 equity shares changed hands on the counter till the time of writing o this report, as against an average 24,000 shares that were traded daily in the past two weeks on the BSE, the exchange data showed.
During the financial year 2019-20 (FY20), the operations of the company were adversely affected by the poor environment in the infrastructure and capital goods sector. The economic momentum remained subdued due to lack of both private and public investment in major infrastructure sectors such as power, steel and cement.
However, the company has strengthened itself with a strong diversified business model across products and geographies which should allow it to constantly look for opportunities. “Major opportunities exist in the Jal Jeevan Mission to be executed by 2024 which aims to provide water to every household in India. Similar, opportunities exist in energy efficiency projects across the country along with an expected upturn in public and private investments in India,” WPIL said in its FY20 annual report.