Indian Hume jumps post receipt of LoAs

Indian Hume Pipe Company has received two Letters of Acceptance aggregating to Rs. 551.40 crore (including GST) from Water Resources Investigation Division, Palanpur, Gujarat, the company informed bourses on Tuesday.

The company’s first Letter of Acceptance is worth Rs. 340.77 crore for EPC contract which includes Lift Irrigation M. S. pipeline project for transmission of 200 cusecs of water from N.M.C. near Tharad to Sipu Dam with Operation & Maintenance for 10 years - Package - 1. The project is to be completed within 24 months.

The second Letter of Acceptance is of Rs. 210.63 crore EPC contract for Lift Irrigation M. S. pipeline project for transmission of 200 cusecs of water from N.M.C. near Tharad to Sipu Dam with Operation & Maintenance for 10 years - Package - 2. The project is to be completed within 24 months. Both projects are valued including GST. Besides, the agreements will be signed in due course.

The stock of Indian Hume Pipe in Tuesday’s trading session opened at Rs. 304.90 apiece and post announcement of this projects the stock went up ~7 per cent to touch an intraday high of Rs. 314.95. The stock later cooled down and settled for the day at Rs. 304.55 apiece, up by 3.4 per cent from its previous close