Shares of VA Tech Wabag rose nearly 6% in morning trade on March 31 after the company’s joint venture secured an order worth Rs 4,400 crore.

Va Tech Wabag has secured a 400 million litters per day (MLD) seawater reverse osmosis (SWRO) desalination project worth approximately Rs 4,400 crore from the Chennai Metropolitan Water and Sewerage Board (CMWSSB).

The project is planned to be executed as a joint venture with Metito Overseas Limited under the leadership of WABAG.

The DBO order includes the design, engineering, procurement, construction, installation, testing and commissioning of a 400 MLD SWRO desalination plant and associated seawater intake system for 42 months, followed by 20 years of operations and maintenance (O&M), the company said at stated in its press release.

The desalination process will include sheet clarifiers, dissolved air flotation systems and gravity dual media filters, reverse osmosis and remineralization to produce clean drinking water CMWSSB will be further distributed to residents of South Chennai.

The company said the project is a landmark for Chennai and India as it will be the largest desalination plant in Southeast Asia.

Va Tech Wabag was quoted at Rs 354.45 on the BSE at 9:16 am, up Rs 17.90 or 5.32%.

The stock hit a 52-week high of Rs 374.90 and a 52-week low of Rs 220 on December 12, 2022, and June 17, 2022, respectively.