Shares of Kalpataru Power Transmission Ltd slumped over 12 per cent on Wednesday after the company said it has received a notice from the World Bank over “process violations” in bids for two projects in Africa.
Around 12.45 p.m., the company’s shares on the BSE touched an intra-day low of Rs 415.10, falling 12.42 per cent from its previous close.
Kalpataru Power, however, trimmed its losses to close at Rs 448.75, lower by Rs 25.25, or 5.33 per cent, on its previous close of Rs 474 per share.
Earlier on Wednesday, the company said in a regulatory filing that it 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 seven years ago.
The company, however, said that it “disagrees with the Bank’s position and intends to contest the proceedings vigorously”.
According to analysts, the allegations by World Bank may result in financial institutions stopping their funds for the projects and the power transmission major may also be charged with a hefty penalty, if found guilty.