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Welspun Enterprises emerged as the lowest bidder for over INR 10,000 crore worth of infrastructure contracts in Maharashtra, spanning a highway project and a water treatment scheme. The highway, under a toll-model, will connect Pune and Shirur over 29 years, while the BMC commission involves a large-scale water treatment facility. The company is also considering a capital raise via convertible warrants to support execution.
In a rare disclosure, Welspun Enterprises informed stock exchanges this past week that it has attained L1 status in major infrastructure projects in Maharashtra valued at more than INR 10,000 crore. The firm usually waits until receipt of a Letter of Award before announcing such contracts. Advertisement
The first assignment involves building a six-lane, partially elevated highway corridor between Pune and Shirur (NH-753F) under a design-finance-build-operate-transfer (toll) framework. The contract is valued at approximately INR 7,300 crore and carries a 29-year concession period. The Ministry of Road Transport and Highways (MoRTH), via the Maharashtra State Infrastructure Development Corporation, is overseeing the development.
The second project entails setting up a 910 million litres per day water treatment plant in Panjrapur for the Brihanmumbai Municipal Corporation (BMC). The contract, valued at INR 3,145 crore, includes operations and maintenance over a 15-year span and will be executed in partnership with Veolia Water Technologies, Malaysia.
To support execution, the board is slated to convene to deliberate a proposal for raising funds through issuance of convertible equity warrants on a preferential basis, subject to regulatory and shareholder approvals.
Success in executing these contracts could not only bolster the company's revenue stream but also enhance its credibility in complex, long-term infrastructure projects. The planned fund-raising through convertible warrants further signals a proactive approach to resource mobilisation, contingent on approvals and market conditions.
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