SPML Infra secures ₹159 crore surety bond limit and ₹21.61 crore arbitration award
SPML Infra announced two major financial developments including a ₹159 crore surety bond limit from an IRDAI-registered insurer and a favorable ₹21.61 crore arbitration award from Chennai Metropolitan Water Supply and Sewerage Board. These developments strengthen the company's bidding capabilities and cash flow position, following recent project wins including a ₹207.38 crore Jal Jeevan Mission project in Rajasthan.
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SPML Infra Ltd announced two significant financial developments that strengthen its operational capabilities and cash flow position. The infrastructure development firm received a ₹159 crore surety bond limit from a reputed insurer registered with the Insurance Regulatory and Development Authority of India (IRDAI) and secured a favorable arbitration award worth ₹21.61 crore.
Financial Developments Overview
The company's recent achievements demonstrate improved financial flexibility and successful resolution of contractual disputes:
| Development: | Amount | Source/Authority |
|---|---|---|
| Surety Bond Limit: | ₹159.00 crore | IRDAI-registered insurer |
| Arbitration Award: | ₹21.61 crore | Chennai Metropolitan Water Supply and Sewerage Board |
Surety Bond Enhancement
The ₹159 crore surety bond limit represents a significant enhancement to SPML Infra's bidding capabilities. This facility will enable the company to participate more effectively in tenders by providing security in place of bank guarantees for contract awards. The arrangement with the IRDAI-registered insurer offers greater financial flexibility and reduces the burden on traditional banking facilities.
Arbitration Award Success
SPML Infra secured the ₹21.61 crore arbitration award from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) on December 31, 2024. The award, which favors the company, remains subject to the terms and conditions stipulated in the arbitration proceedings. This resolution adds to the company's receivables and demonstrates successful contract dispute management.
Recent Project Wins
The developments follow SPML Infra's recent ₹207.38 crore project award from the Public Health Engineering Department (PHED), Jhalawar, Rajasthan, secured in joint venture with Shree Hari Infraprojects Private Ltd. This project under the Jal Jeevan Mission includes:
- Construction and commissioning of three intake wells and water treatment plants (118 MLD combined capacity)
- Three clear water reservoirs with 16.10 million litres total capacity
- 52.60 km of pipelines (600mm to 1300mm diameter)
- PLC and SCADA systems integration
- 10 years of operations and maintenance
- Service delivery to over 1.03 million people
Market Performance
SPML Infra Ltd shares closed at ₹187.00 on January 2, declining ₹3.29 or 1.73% on the BSE, reflecting broader market movements despite the positive corporate developments.
Historical Stock Returns for SPML Infra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.51% | +2.75% | -3.76% | -35.30% | +0.71% | +1,175.30% |
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