Rs 1,837 Crore Order Book: Small-Cap Infrastructure Company Bags Rs 103 Crore Sewer Project From UP Jal Nigam; Shares Jump 13%
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EMS has emerged as the lowest bidder for a sewer infrastructure project in Varanasi, with an estimated contract value of Rs 102.85 crore and a 24-month execution timeline.
✨ Key Takeaways
On Monday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 0.79 per cent to 23,182.75. Despite the weak market sentiment, EMS Ltd's share price jumped 13.43 per cent to Rs 329.90 after the company announced that it had secured the lowest bidder (L-1) status for a major government infrastructure project in Uttar Pradesh.
EMS Emerges As L-1 Bidder For Rs 102.85 Crore Project
EMS Limited informed the stock exchanges that it has been declared the lowest bidder (L-1) by UP Jal Nigam (Urban), Varanasi, for a sewer infrastructure project valued at approximately Rs 102.85 crore, excluding GST.
The contract has been awarded by a government entity and is aimed at strengthening sewer infrastructure across multiple wards under the jurisdiction of Nagar Nigam, Varanasi.
Scope Of Work
The project will be executed on a turnkey basis and includes surveying, soil investigation, design, procurement and construction activities.
The scope of work covers the laying and jointing of sewer networks as well as providing sewer house connections across 18 identified problematic wards in Varanasi. These include areas such as Shivpurwa, Tulasipur, Birdopur and Kajipura, among others.
EMS will be responsible for supplying all materials, labour, tools, plants and other resources required for the successful execution of the project.
Project Timeline
According to the company, the project is scheduled to be completed within 24 months from the commencement date.
The turnkey nature of the contract places full responsibility for design, procurement and construction on EMS Limited throughout the execution period.
EMS Clarification
EMS clarified that neither its promoters, promoter group entities nor group companies have any interest in UP Jal Nigam (Urban), Varanasi. The company further stated that the contract does not fall under related-party transactions.
The company added that it will provide further updates regarding the project as and when material developments occur.
About EMS Ltd
EMS Ltd is engaged in providing engineering, procurement and construction (EPC) services primarily focused on water supply systems, sewerage systems, wastewater treatment plants, sewage treatment plants and allied infrastructure projects.
The company undertakes turnkey projects for government bodies and municipal authorities across various states and has established a presence in the water and wastewater management segment. Its business model covers project design, execution, operation and maintenance of water and sewerage infrastructure.
With a growing order book and increasing participation in government-backed urban infrastructure projects, EMS continues to focus on expanding its footprint in India's water and sanitation sector.
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Disclaimer: The article is for informational purposes only and not investment advice.