Shares of Patel Engineering Ltd gained over 7 percent in trade on Friday after the civil construction company announced that it has bagged the Rihand Micro Irrigation Project in Madhya Pradesh along with its joint venture (JV) partner.

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In a stock exchange notification issued on Friday, Patel Engineering said, “The company along with the JV partners have received a letter of award for the Rihand Micro Irrigation Project from Department of Water Resources, Madhya Pradesh.”

Patel Engineering was earlier declared as the lowest bidder for the project.

The value of the contract is around Rs 640 crore, but Patel Engineering’s share in the project is Rs 512 crore as it is an 80 percent partner in the JV.

Giving details of the project, Patel Engineering said that it involved construction of a pressure irrigation system to supply water through the rising/gravity mains by pressurised pipeline system for micro irrigation.

The project, located in the Singrauli District in Madhya Pradesh, needs to be executed within 36 months.

Patel Engineering is a construction company specialising in the hydro power generation and irrigation segments.

Besides this new order, company on February 15 had announced order win of Rs 1,567 crore on February 15 which had taken total orderbook to nearly Rs 17,000 crore. The company has recently announced Rs 325 crore rights issue that opened on February 14 and closed on February 27. And for the same, the issue price was set at Rs 12.60/share.

Speaking about the rights issue, Rupen Pravinbhai Patel, CMD said, “The fund raising through right issue will help us in reaching our target of debt reduction and also help in fund working capital requirements of the Company and shall boost the operations of the working.”

The company had said that the micro irrigation project with a total value of Rs 470.67 crore would be executed with a JV partner, of which Patel Engineering’s share would be Rs 240.04 crore. The water tunnel project worth Rs 555.83 crore would be executed by the company without any JV partnership.

Shares of Patel Engineering are trading 9 percent higher at Rs 15.75.

(Edited by : Rukmani Krishna)