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Patel Engineering Share Surges 6% on Securing Maharashtra Irrigation Project

The project is located in the state of Maharashtra and has to be completed in a period of 24 months. 

Shares of Patel Engineering surged 6% on April 27 after the company secured an irrigation project from the Maharashtra Water Resources Department.

The stock was trading 3.9% higher at Rs 20.67 at 10:17 am on the BSE. The stock has risen nearly 40% in the past month.

The company and its joint venture partners have received contracts for the Krishna Marathwada Irrigation Project – Upgrading Irrigation Scheme 01 and 02 from the Department of Water Resources, Government of Maharashtra, the company said in a regulatory filing.

Patel Engineering has a 51% partner in the joint venture for Scheme 01 project and a 60% partner in the joint venture for Scheme 02 project, and its share in the two projects totals Rs 451.28 crore, it said.

The total contract value is Rs 841 crore. The order is for the investigation, design, construction, testing and commissioning of civil and related works under the Enhanced Irrigation Scheme 1 and Scheme 2 of the Krishna Marathwada Irrigation Project in Osmanabad, Maharashtra.

Patel Engineering is a civil construction company specialising in hydropower and irrigation.

Kedia Securities, backed by prominent investor Vijay Kedia, held a 1.29% stake in Patel Engineering as public shareholders, according to the shareholding pattern for the quarter that ended in December.

Promoters and domestic institutional investors have reduced their stakes in the engineering firm, while retail investors have piled into the stock.

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