Deep Industries stock climbs 11% after winning order

The company has received two orders worth Rs184cr from ONGC Ltd.

Mar 14, 2019 10:03 IST India Infoline News Service

Deep Industries
Shares of Deep Industries climbed 11% in the morning trade on the BSE after the company has received two orders worth Rs184cr from ONGC Ltd

The two orders were for deployment of 2 number of 1,000 HP drilling rig for ONGC Ahmedabad Asset for a period of three years. The approximate value of the said contracts is Rs91.75cr each, calculated at exchange conversion rate of Rs70 per US Dollar. After receiving orders, the management said Indian oil‐gas majors have started issuing orders after a long hiatus and that they believe this is positive for industry and company in particular.

Paras  Savla, Chairman and Managing Director said, “These are prestigious orders for Deep industries. India has vast potential to explore in the Oil and Gas space and  we believe we will be able to exploit this opportunity on the back of rich experience and track record in  the sector. Indian Oil‐Gas majors have started issuing orders after a long hiatus and we believe  this is  positive  for  our  Industry  and  our  company  in  particular.  This  order  inflow  coupled  with  our  growing  orderbook in the overseas Oil‐Gas services segment give us good revenue visibility for the next couple of  years.”   

Deep Industries Ltd is currently trading at Rs157.35, up by Rs14.95 or 10.5% from its previous closing of Rs142.40 on the BSE. The scrip opened at Rs149 and has touched a high and low of Rs170 and Rs145.10 respectively.

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