Thermax Limited

Thermax shares rally 6% after Rs.513 Cr order win

Thermax’s subsidiary TBWES secured a Rs.513 crore order for a 600 MW Botswana project, boosting shares 6% to Rs.5,605 along with expanding their international project portfolio.

Thermax Ltd is known for manufacturing specialty chemicals and providing products for heating, cooling, and waste management solutions along with building boilers for steam and power generation. TBWES, its subsidiary, provides equipment and solutions for generating steam through the combustion of fuels and heat recovery from industries. The shares of Thermax surged today, following the announcement that its subsidiary secured a big order, the price rose by around 6% to reach Rs.5,605.

Contract Win

Thermax Group’s wholly-owned subsidiary, Thermax Babcock & Wilcox Energy Solutions Limited (TBWES), has secured a major order worth Rs.513 crore which involves setting up a 600 MW greenfield energy project in Botswana, Southern Africa. This project is significant for Thermax, marking one of its largest international orders in recent years. The scope of work for TBWES includes designing, engineering, manufacturing, testing, supply, supervision of erection & commissioning, and performance testing.

Phase-Wise Development

This contract supports the development of the first phase, which includes a 300 MW power station. The power generated from this project will be sold to the national utility power company, Botswana Power Corporation, addressing the country’s increasing power demands and supporting its growth to reduce its reliance on imported power.

Financial Impact

This Rs.513 crore order is expected to significantly boost Thermax’s order book and revenue stream and a successful implementation of the project will likely open up further opportunities in the African continent, a region with growing energy needs and infrastructure development potential. For investors, this order reinforces Thermax’s growth plans and its ability to secure and execute large-scale projects globally.

Conclusion: In conclusion, this order from Botswana marks a milestone for Thermax, highlighting its capability in executing large-scale international projects and the company’s portfolio. The positive investor response, reflected in the 6% surge in its stock price, brings out the market’s confidence in Thermax’s growth trajectory in the coming few years.