Shares of Patel Engineering Ltd rallied 14% to hit a day’s high of Rs 38.60 on 27th November, after the firm said it has secured two Letters of Intent (LoIs) worth a combined Rs 798.19 crore for a coal excavation and transportation project in Chhattisgarh, according to its exchange filing on Wednesday (26th November).

The LoIs were issued by Saidax Engineers and Infrastructure Pvt Ltd for work at the Jhiria West Open Cast Project in the Hasdeo area of Bilaspur. This project is for South Eastern Coalfields Ltd (SECL). The project value does not include taxes.

As per the disclosure, the nine-year contract involves overburden removal, rehandling, coal cutting with surface miners, loading, and transporting coal. It also includes arranging the necessary equipment, workforce, and maintenance. Patel Engineering clarified that its promoters have no interest in the awarding entity. Furthermore, the order is not a related-party transaction.

Managing Director Kavita Shirvaikar said the new project strengthens the company’s track record in large-scale infrastructure work. It also adds to its future project pipeline. She noted that the company has already bid for projects worth over Rs 34,000 crore. Another Rs 18,000 crore worth of opportunities are expected this financial year. Nearly Rs 1 lakh crore worth of projects are likely to be put out to bid over the next one to two years, she added.

At 12:01 PM, shares of Patel Engineering were trading 13.45% higher at Rs 37.63 on NSE.

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