Va Tech Wabag shares rise after new partnership announcement

Shares of VA Tech Wabag rose by 9% today, hitting a four-week high of ₹ 1,499 per share. The increase comes after the company announced a new project aimed at developing sustainable water infrastructure. In an exchange filing, VA Tech Wabag said it signed a non-binding term sheet to create a dedicated Municipal Platform. This platform will focus on capital projects for the municipal sector. The company is collaborating with Norfund and two other international investors for this initiative. The Municipal Platform will invest up to $100 million in capital projects over the next three to five years. It aims to address the growing demand for advanced water treatment technologies. VA Tech Wabag will act as the technical partner, providing engineering and maintenance services. This positive news follows several recent developments for the company. VA Tech Wabag secured a significant order worth ₹ 340 crore to build and operate water treatment plants for GAIL India. They also obtained a ₹ 20 crore repeat operations and maintenance order from Indian Oil Corporation. Rekha Jhunjhunwala, the wife of the late investor Rakesh Jhunjhunwala, holds an 8.04% stake in the company. After a period of declines, the stock has gained 14% in March and has delivered impressive returns, rising 1,360% over the past five years.