Rekha Jhunjhunwala portfolio stock VA Tech Wabag zooms 9% to hit 4-week high. Here’s why

Shares of Va Tech Wabag, a leading pure-play water technology Indian multinational group, rose sharply in Friday's trading session, March 21, gaining 9% to reach a 4-week high of ₹1,499 per share. The surge followed the company's collaboration with Norfund and two other international investors to establish a Municipal Platform for sustainable water infrastructure projects.

In an exchange filing today, the company announced that it has signed a non-binding term sheet for a dedicated Municipal Platform, focusing on the development of capital projects for the municipal sector.

"The Municipal Platform will commit an equity investment of up to $100 million in capital projects over a 3 to 5-year period," the company stated.

The platform is being established in collaboration with an investor consortium, including Norfund and two other international investors. Norfund, the Norwegian government’s investment fund, is dedicated to supporting sustainable development, while WABAG said it will serve as the technical partner, providing EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) services.

WABAG will also make a minority investment in line with its asset-light strategy. The platform aims to leverage the expertise of all partners to meet the growing demand for advanced water treatment technologies.

Commenting on this development, Mr S Varadarajan, Whole-time Director & Chief Growth Officer said, "This step of signing the term-sheet with strong global partners to establish the Municipal platform underscores our commitment to addressing global water challenges by leveraging cutting-edge technology and expertise. This initiative reflects our asset-light strategy, emphasizing partnerships that combine WABAG’s technical excellence with the financial strengths of our collaborators to accelerate impactful and sustainable water solutions."

The company’s shares have been gaining traction on Dalal Street, driven by multiple positive developments. On March 12, the company said it secured order worth ₹340 crore towards Design, Build, Operate (DBO) of a 450 cum/hr UF & RO based Effluent Recycle Plant, Evaporator based Zero Liquid Discharge (ZLD) Plant and new Waste Water Treatment Plant & augmentation of existing Waste Water Treatment Plant, for GAIL India’s integrated petrochemical complex at Pata, Uttar Pradesh.

The company also said it has also secured a repeat Operations & Maintenance (O&M) order from Indian Oil Corporation (IOCL) worth ₹20 crore towards O&M of the Tertiary Treatment Reverse Osmosis (TTRO) Plant at IOCL Panipat Refinery, Haryana for a further period of 3 years.

Rekha Jhunjhunwala’s stake in the company

According to Trendlyne's shareholding data, late investor Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, held an 8.04% stake at the end of the December 2024 quarter.

The company’s shares, following their one-way rally, have witnessed profit booking, resulting in three consecutive months of declines. However, the momentum reversed in March, with the stock gaining 14% so far.

Looking further back, the stock has delivered stellar returns in the long run, currently up 1,360% over the last five years. In December, the stock recorded a fresh all-time high of ₹1,944, edging toward the ₹2,000 mark.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.