KEC International shares tumble after Power Grid imposes nine-month tender ban

Shares of KEC International Ltd. declined sharply on Wednesday after the company disclosed that Power Grid Corporation of India Ltd. has barred it from participating in fresh tenders and contract awards for nine months. The stock slipped more than 7 per cent to Rs 726.45 apiece shortly after market open on November 19, deepening its recent weakness on the bourses.

Power Grid bans KEC International from tenders for nine months

In a regulatory filing, KEC International said it received a letter from Power Grid on Tuesday informing the company that it has been excluded from upcoming tenders and contract awards from November 18 onward.

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The ban is linked to an alleged breach of contractual provisions relating to a matter the company had previously disclosed to exchanges on March 24 this year.

Importantly, Power Grid clarified that ongoing projects under execution by KEC International will not be affected by the restriction.

KEC exploring legal options; says impact on operations will be limited

KEC International said it is evaluating all options, including taking legal recourse and approaching Power Grid to reconsider its decision. The company emphasised that it does not expect any significant impact on operations or financials, citing a strong order book and a healthy tender pipeline across its core business segments.

Reaffirming its stance on compliance, KEC said it “upholds the highest standards of corporate governance, ethics and transparency” and remains committed to adhering to all laws and regulatory frameworks.

Stock under pressure; KEC shares down nearly 40% in 2025

The latest drop adds to the company’s ongoing challenges in the market.

KEC International’s stock has fallen 14.8 per cent over the past month and is down 39.5 per cent so far this year.

Earlier, in a November 11 CNBC-TV18 interaction, the company reiterated its 15 per cent revenue growth guidance for FY26 and highlighted that easing steel prices could bolster margins in the coming quarters.