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KEC Shares Plunge 7% After Power Grid Corp Bans Company from Bids

KEC International shares took a significant hit, dropping over 7% in Wednesday's trading session. The decline came after the company disclosed that Power Grid Corporation has barred it from participating in new tenders for nine months. This ban relates to alleged contractual violations that previously involved a CBI investigation into bribery allegations. Despite the setback, KEC maintains that its existing projects and strong order book will prevent major operational impacts.

Key Points: KEC Shares Fall After Power Grid Bars Company from Bids

  • KEC shares fell 7.2% to intra-day low of Rs 724.70 amid trading
  • Existing Power Grid projects will continue unaffected during ban period
  • Ban follows CBI investigation into alleged bribery involving company officials
  • Company examining legal options while maintaining strong order book position
2 min read

KEC shares slide over 7 pc after Power Grid Corp bars company from new bids

KEC International stock drops over 7% after Power Grid Corporation bans the company from new tenders for 9 months due to alleged contractual violations.

"The Company has been excluded from participating in tenders of PGCIL for a period of 9 months - KEC International Exchange Filing"

New Delhi, Nov 19

Shares of infrastructure engineering and construction company, KEC International fell as much as 7.2 per cent to an intra-day low of Rs 724.70 on Wednesday after the company disclosed that Government-owned Power Grid Corp Power Grid Corporation of India has barred it from bidding for its tenders for the next nine months.

As of 12.10 pm the stock was quoted at Rs 734.30, down Rs 47.40 or 6.06 per cent on the day.

"The Company has received a letter from Power Grid Corporation of India Limited (“PGCIL”) informing that the Company has been excluded from participating in tenders of PGCIL and award of contracts by it for a period of 9 months from November 18, 2025," KEC International said in an exchange filing.

The company clarified that existing projects of PGCIL under execution will not be affected, as the restriction covers only new bids and not current work.

The company said that the ban was for "alleged transgression of contractual provisions, in relation to an earlier matter communicated to the stock exchanges."

The Central Bureau of Investigation in March arrested senior office holder of PGCIL and KEC International, for alleged transaction of bribe of Rs 2.5 lakh to extend favours to the latter.

The company is examining options including legal recourse or approaching Power Grid for reconsideration. KEC said it does not expect any significant impact on its operations and financial position, considering the strong order book and tender pipeline.

KEC International is an infrastructure Engineering, Procurement and Construction company with business presence in segments such as power transmission and distribution, civil, transportation, renewables, oil and gas pipelines and cables and conductors.

KEC posted a consolidated revenue growth of 19 per cent year‑on‑year to Rs 6,092 crore in Q2 FY26 and EBITDA of Rs 430 crore with margin improving to 7.1 per cent from 6.3 per cent.

- IANS

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Reader Comments

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Priya S
Good to see Power Grid taking strict action against corruption. The CBI case mentioned here shows this wasn't a minor issue. Companies need to understand that ethical business practices are non-negotiable, especially in government contracts. 👍
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Arjun K
As someone working in the infrastructure sector, I know how crucial PGCIL tenders are for companies like KEC. While the ban is only 9 months, the reputational damage could last much longer. Hope they clean up their act and focus on transparent bidding processes.
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Sarah B
The silver lining is that existing projects continue and they have a strong order book. At current levels, this might be a buying opportunity for long-term investors. The company's diversification into renewables and other segments should help cushion the impact.
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Vikram M
Just Rs 2.5 lakh bribe? That seems surprisingly small for such a major penalty. Either there's more to this story or PGCIL is making an example out of KEC. Either way, this sends a strong message to all infrastructure companies about compliance.
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Michael C
While I appreciate the need for ethical practices, I hope this doesn't affect India's infrastructure development timeline. KEC is one of the major players in power transmission projects. Delays in project execution could impact our energy transition goals.
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An

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