VA Tech Wabag Shares Drop 16% After Saudi Order Cancellation
$317 million order cancellation impacts stock value.....
VA Tech Wabag Shares Plunge 16% After Saudi Desalination Order Cancellation
Shares of VA Tech Wabag fell sharply by 16% on Wednesday, December 18, following the cancellation of a $317 million (approximately ₹2,700 crore) contract for a 300 MLD Mega Sea Water Desalination Plant in Saudi Arabia.
In a regulatory filing, VA Tech Wabag announced that the Saudi Water Authority informed all tender participants on December 16, 2024, that the project had been cancelled due to internal administrative procedures. The cancellation caused the company’s stock to open 14% lower at ₹1,575.3, marking a 20% drop from its recent peak of ₹1,944.
The cancelled project involved the design, engineering, supply, construction, and commissioning of the desalination plant on the west coast of Saudi Arabia, near the city of Yanbu al-Bahr. The plant, designed to use cutting-edge desalination technologies, was intended to meet high energy efficiency standards and provide top-quality water.
VA Tech Wabag is currently engaging with the Saudi customer to understand the reasons behind the cancellation of the tender.