Welspun Enterprises gains after entering agreement

Welspun Enterprises rose 1.27% to Rs 191.65 at 09:42 IST on BSE after the company entered into a concession agreement with Madhya Pradesh government for Dewas water supply project.

The announcement was made after trading hours yesterday, 10 January 2018.

Meanwhile, the S&P BSE Sensex was down 9.97 points, or 0.03% to 34,423.10. The S&P BSE Small-Cap index was up 38.09 points, or 0.19% to 19,941.40

On the BSE, 55,000 shares were traded in the counter so far, compared with average daily volumes of 2.14 lakh shares in the past one quarter. The stock had hit a high of Rs 194.10 and a low of Rs 189.70 so far during the day. The stock hit a 52-week high of Rs 198 on 10 January 2018. The stock hit a 52-week low of Rs 60.05 on 10 January 2017.

The small-cap company has equity capital of Rs 147.77 crore. Face value per share is Rs 10.

Welspun Enterprises said that Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Dewas Waterprojects Works (a wholly owned subsidiary of the company) have entered into the concession agreement on 9 January 2018 for restructuring the Dewas Industrial Water Supply Project under the Madhya Pradesh Infrastructure Development (Swiss Challenge) Guidelines 2014. The estimated project cost of the restructured project as per the bid documents of the project is Rs 118 crore.

The project construction schedule is 12 months and the concession period is up to 15 June 2037, after which it will be transferred to MPSIDC. The restructured project involves the development of a water supply project to supply treated water of up to 23 million litres per day (MLD) to industrial customers in Dewas during the concession period. Once the restructured project is operational, the earlier Dewas Industrial Water Supply Project from Nemawar of the company will be handed over to PWD, M.P. Government, at no cost.

On a consolidated basis, net profit of Welspun Enterprises spurted 354.8% to Rs 17.20 crore on 342.6% surge in net sales to Rs 158.66 crore in Q2 September 2017 over Q2 September 2016.

Welspun Enterprises, formerly Welspun Projects, part of the Welspun Group, is an operating company in the infrastructure business. The company also has investments in oil & gas exploration.

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