Shares of VA Tech Wabag surged 14 per cent intra-day to trade at Rs 352 apiece on the BSE on Monday, boosted by heavy volumes. The buying interest was seen in the scrip on expectations that Budget 2019 may focus on the water crisis.
The trading volumes on the counter jumped more than 15-times with a combined 1.4 million shares, representing 2.5 per cent of the company's total equity, changing hands on the NSE and BSE till 01:29 pm.
VA Tech Wabag, a multinational player in the water treatment industry, is engaged in the business of water treatment field. The company's principle activities include design, supply, installation, construction and operational management of drinking water, wastewater treatment, industrial water treatment and desalination plants.
“Union Budget 2019 could be deployed to set up the necessary platforms such as a special purpose vehicle to raise funds, earmark a portion of the cess that it collects to fund panchayats and municipalities to do feasibility studies, involve the private sector to invest in R&D for water-conservation tech, set aside a part of the windfall from RBI to fund waste-management-recycling projects in major metros,” a report by Indian Express said.
Union Finance and Corporate Affairs minister Nirmala Sitharaman, who is the first full-time woman finance minister, will be presenting the budget for 2019-20 on Friday, July 5.
On June 18, VA Tech Wabag announced that it had secured orders worth Rs 1,477 crore from State Mission for Clean Ganga - Uttar Pradesh towards operation, maintenance and management of the sewage treatment and network infrastructure in the cities of Agra and Ghaziabad for a period of 10 years, expandable for an additional period of 5 years.