Welspun Enterprises shares rose 2% to ₹2,720 on NSE on 7 Oct after its unit won a ₹66 crore Delhi sewer order.

Welspun Michigan Engineers Limited, a material subsidiary of Welspun Enterprises Limited, has received a Letter of Acceptance from the New Delhi Municipal Council (NDMC).

The contract is worth about Rs 66 crore, excluding GST. A Letter of Acceptance is a formal note that the client has accepted the company’s bid.

Excluding GST simply means the tax is not counted in the figure. NDMC looks after civic services in central Delhi.

This job is about repair, not new construction. Rehabilitation means renewing an old pipe so it works properly again.

The pipe is a twin barrel concrete sewer, 2100mm wide. It runs from C-Hexagon to Lodhi Road.

The work must finish within 18 months of the start date. The sources reviewed do not give that start date.

A material subsidiary is one large enough to matter to the parent company’s accounts.

The subsidiary’s order book now stands at roughly Rs 2,356.66 crore. An order book is the value of work a company has won but not yet completed.

This is not its first civic job lately. In September, the subsidiary won two sewer projects from the Ahmedabad Municipal Corporation worth Rs 351.24 crore.

On 7th October, Welspun Enterprises closed at Rs 2,708.70 on NSE, up 1.80% from the previous close of Rs 2,660.90.

The stock opened at Rs 2,660.90 and is up so far this year, against its 52-week high of Rs 2,900.00.

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