Shares of PNC Infratech rallied over 7 percent and SMPL Infra were locked at the upper circuit level of 10 percent in early trade on Friday after a joint venture between the companies received a Letter of Acceptance (LOA) for an EPC Project from the State Water Supply & Sanitation Mission, Namami Gange & Rural Water Supply Department.
In a regulatory filing, PNC Infratech said that the project was for survey, design, preparation of DPR, construction, commissioning and O&M for 10 years of rural water supply project in 952 villages in Devipatan division of Uttar Pradesh.
The approximate value of the project is Rs 952 crore and the specific value will be known at the time of the agreement, it said.
PNC Infratech’s share in the joint venture is 95 percent. The project is to be constructed and put on trial in 21 months upon signing of the agreement and operated for 10 years, following commissioning.
This is the second project in the drinking water supply sector secured by the company, it added.
At 10:30 am, the shares of PNC Infratech were trading 3.77 percent higher at Rs 181.85 apiece while SMPL was at 10 percent upper circuit at Rs 13.23 on the BSE as compared to a 0.71 percent gain in the benchmark Sensex.