Kalpataru Power shares crash on World Bank allegations

Kalpataru Power Transmission Limited (KPTL) informed on Wednesday that the World Bank has issued a notice regarding irregularities in the company’s Africa business. The stock of Kalpataru Power crashed nearly 12 per cent intraday to Rs. 415.10 on the BSE.

The company has received a notice from the World Bank alleging process violations in bids submitted by its transmission business on two projects in Africa more than 7 years ago. The company has however, denied the allegations and is planning to contest the proceedings vigorously. If the allegations are proved right then the company has to pay a huge amount of fine and the stock may see some selling pressure.

Kalpataru Power had reported decent quarter results. Its net profit grew 17.6 per cent yoy in the quarter to Rs. 100 crore as compared to Rs. 85 crore in Q1FY19. Revenue jumped 33 per cent yoy at Rs. 2,771 crore compared to Rs. 2,084 crore in Q1FY19.

Kalpataru Power Transmission is among the largest players firmly entrenched in the global power transmission and infrastructure engineering procurement construction (EPC) space.

Shares of Kalpataru Power closed at Rs. 448.75, down 5.3 per cent as compared to the previous close of Rs. 474.00. The stock hit an intraday high of Rs. 477.25 and intraday low of Rs. 415.10 on the BSE.