Shares of Sobhagya Mercantile Ltd. gained more than 2% after the company said its joint venture, M/s. Adyal L.I.S. (JV), had signed an agreement for an irrigation project worth ₹260.53 crore in Maharashtra.
The stock was trading at ₹878.05, up 2.42% from the previous close of ₹857.30. During the session, it touched a high of ₹901 and a low of ₹870. The company has a market capitalisation of ₹855.97 crore.
Agreement signed with VIDC
The contract has been awarded by the Vidarbha Irrigation Development Corporation (VIDC).
It relates to the construction of the Adyal Lift Irrigation Scheme under the Gosikhurd Project in Taluka Bramhapuri, Chandrapur district, Maharashtra.
According to the company, the agreement was executed on June 9, 2026, the same day the work order was issued by the Office of the Executive Engineer, Gosikhurd Right Bank Canal Division, Bramhapuri.
Project details
Key features of the contract include:
- Total project value of ₹260.53 crore
- Execution period of 33 months
- Initial security deposit of ₹2.61 crore through a bank guarantee
- Stamp duty payment of ₹25 lakh
The project is expected to provide revenue visibility through early 2029.
Sobhagya holds 40% stake in the JV
M/s. Adyal L.I.S. (JV) is a partnership between:
- Sobhagya Mercantile Ltd. – 40%
- S. S. Fabricators & Manufacturers Pvt. Ltd. – 60%
Based on its ownership share, Sobhagya’s economic interest in the contract works out to around ₹104.21 crore.
Tender acceptance was disclosed earlier
The company had previously informed exchanges about the acceptance of the tender on May 12, 2026.
The latest announcement confirms that the agreement has been signed and the project has moved into the execution stage.
Company profile
Mumbai-based Sobhagya Mercantile Ltd. is engaged in construction and infrastructure development. The company undertakes government projects in areas such as:
- Irrigation
- Water management
- Canal infrastructure
It often participates in projects through joint venture arrangements.
TL;DR:
Sobhagya Mercantile’s joint venture has signed a ₹260.53 crore contract with the Vidarbha Irrigation Development Corporation for the Adyal Lift Irrigation Scheme in Maharashtra. Sobhagya holds a 40% stake in the JV, giving it an economic interest of about ₹104.21 crore.
AI summary:
- Sobhagya Mercantile JV secured a ₹260.53 crore irrigation project.
- The contract was awarded by VIDC in Maharashtra.
- The project has an execution period of 33 months.
- Sobhagya holds a 40% stake in the joint venture.
- The agreement was formally executed on June 9, 2026.