VA Tech Wabag Surges 5% to 52-Week High on Rs 1,415 Cr Kuwait Order

VA Tech Wabag Limited hit a fresh 52-week high of Rs 1,918.70 on the NSE on 19 June, after the company announced it had won a massive water desalination contract in Kuwait. The stock surged nearly 5% at its peak, making it one of the standout performers on an otherwise weak market day.

The order is a big one. Kuwait’s Ministry of Electricity, Water and Renewable Energy has awarded Wabag a Design, Build, Operate contract for the Doha Seawater Reverse Osmosis Desalination Plant in Kuwait. 

The contract is classified as a “Mega” order under Wabag’s own framework, which means its value exceeds $150 million, roughly Rs 1,415 crore.

The plant will produce around 272 million litres of clean drinking water every day, using seawater as its source. Think of it as a large factory that takes in seawater and pushes out safe, drinkable water for Kuwait’s population. 

The project also includes solar panels to partially power the facility, which keeps the energy cost and carbon footprint lower.

This is not just another contract win. It is Wabag’s first-ever project in Kuwait, giving the Chennai-based water technology company a foothold in a new Gulf market. 

The project will be executed as a joint venture, with Wabag leading alongside Kuwait-based Heavy Engineering Industries and Shipbuilding Company (HEISCO).

The construction phase runs over 36 months. After that, Wabag will also manage and operate the plant for five years, giving the company steady revenue well beyond the build phase.

Just ten days ago, Wabag also secured a large sewage treatment order in Ajman, confirming the company’s continued push across the Gulf Cooperation Council region. The filing confirms there is no related-party interest in this contract.

At 12:27 pm on 19 June, shares of VA Tech Wabag was trading at Rs 1,907.50 on the NSE, up 4.70% from its previous close of Rs 1,821.80. 

The stock has gained 37.22% over the past month and is up 45.15% year to date.

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