Welspun Enterprises updates on LOA from Soma Indus

Welspun Enterprises Limited had earlier announced regarding procurement and construction contract of Rs. 2,336 core for the project "Six-laning of Varanasi-Aurangabad Section of NH-2 from Km 786+000 to Km 978+400 (Length - 192.4 km) in the State of Uttar Pradesh and Bihar" entered into with Soma Indus Varanasi Aurangabad Tollway Private Limited ("Soma Indus").

Soma Indus has issued a Letter of Award to the Company for the Project for an additional contract of Rs. 1,600 crore (inclusive of GST). Under this contract, the Company will undertake the procurement and construction.

The project construction will start in May 2022 and is scheduled to be completed by November 2023.

Further, the earlier procurement and construction contract for the Project of Rs. 2,336 crore (which became effective in September 2021) has been de-scoped by Rs. 340 crore (inclusive of GST). This takes the outstanding EPC order book of the Company to Rs. 8,400 crore, of which ~Rs 5,950 crore is in the road sector.

Shares of Welspun Enterprises Limited was last trading in BSE at Rs. 88.95 as compared to the previous close of Rs. 90.20. The total number of shares traded during the day was 29001 in over 703 trades.

The stock hit an intraday high of Rs. 90.15 and intraday low of 88.15. The net turnover during the day was Rs. 2581633.00.

Source : Equity Bulls

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WelspunEnterprises INE625G01013 LOA SomaIndus OrderWin