In a communication received on Tuesday, November 18, Power Grid informed KEC International that the company has been excluded from participating in its tenders and from securing any fresh contract awards for a nine-month period beginning from the same day.
The decision stems from an alleged breach of contractual terms linked to an issue KEC had already reported to the exchanges on March 24 this year. Power Grid clarified that the restriction will not disrupt any ongoing projects currently being executed by KEC.
KEC told the exchanges on Tuesday that it is exploring all possible steps, including legal action and engaging with Power Grid to seek a review of the order. The company added that it does not foresee a material impact on its operations or financials, pointing to a strong order book and a steady flow of tender opportunities.
The company reiterated its commitment to maintaining high standards of governance, compliance and ethical conduct, saying its business practices remain rooted in transparency and adherence to all applicable regulations.On November 17, the RPG Group company said it has secured new orders worth Rs 1,016 crores across its key businesses. In the civil segment, the company won projects in the Buildings and Factories space, including a luxury villa development in Western India from an existing real estate client and an upstream project in Eastern India for a major steel producer. Its oil and gas pipelines vertically bagged its first order in the Middle East, marking a strategic entry into the region.The transmission and distribution business also added fresh and extension orders, covering the supply of towers, hardware and poles in the Middle East and the Americas, along with 400 kV transmission line projects in the UAE.
KEC International’s stock price is down 35% since the beginning of the year. The share price has, however, doubled in the last 5 years, giving returns of over 120%.
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