Here's why SPML Infra shares hit 5% upper circuit today

Shares of SPML Infra Limited were locked in 5 per cent upper circuit after the company received a new bulk water supply project order (Isarda dam project to provide safe drinking water in Dausa and Sawai Madhopur districts) from Public Health Engineering Department, Tonk, Rajasthan under the flagship scheme of Jal Jeevan Mission.

The stock ended 5 per cent higher at Rs 60.75 against the previous close of Rs 57.90 on BSE. Market cap of the firm rose to Rs 222.65 crore.

"The ambitious Isarda Dam Project of Govt. of Rajasthan envisages providing safe drinking water facility to almost 25 lakh rural and urban populations that will benefit 1079 villages and 5 towns in Dausa and 177 villages and 1 town in Sawai Madhopur districts in Rajasthan," the company said.

It further informed that the order valued at Rs 1157.08 Crore ($151.6 million) is awarded to SPML Infra Limited, is the largest single order received by the company to execute an important water supply project in Rajasthan.

The work to be completed in 2 years’ time along with 1 year of defect liability period and 10 years of operation and maintenance post-commissioning.

Commenting on the new project order, Mr. Subhash Sethi, Chairman, SPML Infra Limited said, “We are very delighted that our experience of executing several hundred water supply projects has helped us in winning this large project in Rajasthan. SPML Infra has an excellent track record of executing water supply projects in the state and we are sure that the trust placed on us by our esteemed client will be fulfilled in an exemplary manner."

"We are fully committed to the cause of water and this project under the ambitious scheme of Jal Jeevan Mission will certainly help our client to provide clean drinking water to a large number of rural households in the state. It will be our endeavor to develop a robust and sustainable infrastructure for providing valuable water for drinking to realise the idea of ‘Har Ghar Jal” and making a good contribution towards the development of the state," he added.