Shares of multibagger stock Va Tech Wabag Ltd plunged 19 per cent while those of TARC Ltd plunged 10 per cent in Wednesday's trade on two different reasons. While Va Tech Wabag shares plunged 20 per cent following the cancellation of a Rs 2,700 crore order from a Saudi client, TARC was down for the second straight session after SEBI's forensic audit.
Va Tech Wabag, whose shares are up 140 per cent in 2024 so far, plunged 19.17 per cent to hit a low of Rs 1,522.30. The order pertains to the proposed 300 mega liters per day seawater desalination plant in Yanbu, Kingdom of Saudi Arabia.
VA Tech Wabag said the client notified tender participants this week that the said tender stands cancelled due to some internal administrative procedures. "We are currently in touch with the customer to understand and comprehend the reasons in detail," it said.
Saudi Water Authority, formerly known as Saline Water Conversion Corporation (SWCC), manages over 15 million cubic meters of water, mainly in 40 desalination plants, and also some ground and surface water purification stations. The plant VA Tech Wabag was proposed to be engineered for exceptional water quality and power efficiency. It was scheduled for completion within 30 months.
VA Tech Wabag had won orders worth Rs 4,600 crore in H1. This included the Rs 2,700 crore order. "With over Rs 8,000 crores order inflow outlook already in sight for this financial year, we are on track to reach an order book position of over Rs 16,000 crores by the end of this fiscal year. Our order book position which stands today at over Rs 14,500 crore as of H1 with a healthy mix of 59 per cent EPC projects and 41 per cent O&M projects provides a robust revenue and growth visibility," the company said earlier.
In the case of TARC, the stock tanked 9.99 per cent to hit a low of Rs 170.60 on BSE. The stock hit a 52-week high of Rs 275.50 on October 7. Since then, it has been declining. The multibagger stock, which is still up 30.22 per cent in 2024 so far, has gained 302.94 per cent in the past two years.
Sebi believes that the disclosure of the financial information and business transactions of the company have been dealt with a manner which may be detrimental to the interest of investors or the securities market; and/or an intermediary or a person associated with the securities market.
TARC said it would provide all necessary information, assistance and cooperation in this regard and information the stock exchanges of any further developments in the matter. "The company remain committed to maintaining the highest standards of corporate governance, ensuring that all processes are conducted with integrity and transparency. This matter will be addressed thoroughly and efficiently, with no impact on financial, operational or other strategic objectives," TARC said.