Indian Hume Pipe Soars 9% on Rs 738 Cr Rajasthan Order

Indian Hume Pipe shares hit a day high of Rs 361.55 on BSE on Friday, 3 July, after bagging a big water supply order from Rajasthan.

The stock opened well above its previous close and held on to most of its gains through the session. The rally came after the company confirmed it had bagged a fresh order worth a significant sum, adding meaningfully to its order book.

Here’s what the order actually involves. Indian Hume Pipe received a Letter of Acceptance worth Rs 738.61 crore, including GST, from the Public Health Engineering Department of Rajasthan.

In plain terms, this means the state government has formally handed the company a large water infrastructure project to build.

The work covers a water supply system that will serve 275 villages spread across the Dhorimanna and Chouhtan blocks in Barmer district.

Water will be sourced from the Narmada river and piped out to these villages, which currently fall under a larger scheme aimed at improving rural water access and tackling fluoride contamination in local groundwater.

The project is being funded by JICA, Japan’s international development agency. The company has been given 24 months to complete construction.

After that, there’s a one year window where any defects need to be fixed, followed by a much longer 10 year period during which Indian Hume Pipe will operate and maintain the water supply system it builds.

This isn’t a small win for a company of this size. Orders of this scale can meaningfully boost revenue visibility over the next couple of years, which is likely part of why investors reacted so positively today.

Indian Hume Pipe Company Ltd closed Friday’s session at Rs 349.10 on the BSE, up 4.61% from the previous close of Rs 333.70.

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