Indian Hume Pipe surges 14% on securing LoI for order worth Rs 859 crore

Shares of Indian Hume Pipe Company hit a new high of Rs 613.15, surging 14 per cent on the BSE in Monday’s intra-day trade after securing a letter of intent (LoI) for an order worth Rs 859 crore from Tapi Irrigation Development Corporation, Jalgaon (Dhule Irrigation Project Circle), Maharashtra.

At 09:26 AM, the stock of the industrial products company was trading 10 per cent higher at Rs 592.15, as compared to the 0.27 per cent rise in the BSE Sensex.

The average trading volumes on the counter jumped over three-fold, with a combined 910,000 equity shares changing hands on the NSE and BSE.

Indian Hume Pipe, in an exchange filing, said,"The Company has received Letter of Intent with order value of Rs 858.88 crore (excluding Royalty, Insurance, GST, Land acquisition and crop compensation) from Tapi Irrigation Development Corporation Jalgaon (Dhule Irrigation Project Circle), Maharashtra for execution of work on Engineering, Procurement and Construction (EPC), Trial, Testing, Commissioning of Gravity Piped Distribution Network to irrigate 26907 Ha. Command area of Jamphal Dam under Sulwade Jamphal Kanoli Lift Irrigation project Tal. Shindkheda, Dist. Dhule including Operation and Maintenance of entire system for five years."

The company added that the order is to be executed within 24 months.

The company’s estimated balance value of the work was Rs 3,454.46 crore as on July 31, 2024, compared to Rs 2,878.44 crore as on July 31, 2023.

Indian Hume Pipe is in the business of manufacturing, laying and joining of pipelines of various pipe materials such as RCC pipes, steel pipes, pre-stressed concrete pipes, penstock pipes, bar wrapped steel cylinder pipes (BWSC), prestressed concrete cylinder pipes (PCCP), etc. that provide infrastructure facility and development of drinking water supply projects, irrigation projects, sanitation and sewerage schemes, among other applications.

The company is considered a pioneer in the field of water supply, with its presence spread in almost all water supply related activities, such as urban and rural water supply, large diameter Irrigation pipelines, head works including pumping machinery, treatment plants, overhead tanks and other allied civil construction activities.

Indian Hume Pipe also supplies concrete railway sleepers to the Indian Railways.

That apart, the company is also monetizing its land parcels, with the construction of a real estate project starting during the year under review at its land, located in Hadapsar, Pune, Maharashtra.

'Har Ghar Jal' (water to every household) is a scheme announced in the Union Budget 2019 by the Government of India with the aim to provide tap water to every rural household by the year 2024 at a cost of Rs 5 trillion during 5 years.

To augment agricultural output, lift irrigation schemes (LIS) are undertaken by various state governments. A number of LIS are under the anvil.

Further, to make cities and rural areas under more hygienic conditions, and endeavour towards 'Swachha Bharat', a number of sewerage disposal and drainage schemes are also coming up, Indian Hume Pipe said.