Chennai: Shriram EPC Ltd, an engineering, procurement and construction company, has secured a contract worth $230 million (around Rs.1,256 crore) to execute a sanitary systems project in Basra, Iraq in a joint venture with Mokul group of companies.
The shares rose 15% on the news.
The work entails engineering, supply and installation of sanitary, storm and trunk sewer systems with connected pumping stations and road works.
Shriram EPC will oversee the laying of about 240km of sewer pipeline, 160km of storm pipeline and 8km of trunk sewer pipeline along with road works in the area. The project is scheduled for completion in three years.
“It is a sizeable order for our municipal services vertical and will result in sustained revenues over the three year execution period,” T. Shivaraman, managing director and chief executive of the company, said on Wednesday.
It “adds to our healthy order backlog of Rs.2,923 crore as on 30 September 2012,” he said.
On Wednesday, Shriram EPC’s shares rose 15.4% to Rs.79.70 on the BSE, while the benchmark Sensex closed 0.23% higher at 19,391.86 points.