Welspun Enterprises Declared Lowest Bidder For Rs 1,990-Crore Mumbai Water Tunnel Project

Welspun Enterprises Ltd. said on Friday that it has been declared the lowest bidder for a water tunnel project in Mumbai. The bids were invited by the Brihanmumbai Municipal Corporation, the city's civic body.

The company, in an exchange filing, said its offer excluding the goods and services tax was about Rs 1,989.9 crore.

The project involves designing and constructing a tertiary-treated water conveyance tunnel from the wastewater treatment facility in Dharavi to the one located in Ghatkopar.

"The key scope of the contract includes the design and construction of an 8.48 km tunnel with a 3,500 mm bored diameter, to be executed within a period of 93 months using a tunnel boring machine," the company added.

Welspun, a noted infrastructure developer with a diversified portfolio of projects, had posted a net profit of Rs 959.8 crore in the quarter ended June 2024. This was a rise of 18.2% year-on-year.

The company's total income during the same period increased to Rs 959.76 crore from Rs 750.04 crore in the year-ago quarter.

Shares of Welspun closed 1.2% lower at Rs 557.25 apiece on the NSE on Friday, compared to a 0.14% decline in the benchmark Nifty 50.

Year-to-date, the stock has risen by 70.8%, whereas the surge has been sharper at 96.9% over the past 12 months. According to Bloomberg data, one analyst tracking the company has a "hold" rating on the stock. The average of 12-month analyst price targets implies a potential downside of 3.5%.