Shares of Kalpataru Power Transmission plunged more than 12 percent intraday on August 28 after the company said that the World Bank had issued it a notice over alleged irregularities in its Africa business.
In a BSE filling, the company said the World Bank had alleged process violations in the bids it submitted for two projects. The World Bank is providing funds for the works.
"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 seven years ago," Kalpataru Power said in a BSE filing.
"The company disagrees with the bank's position and intends to contest the proceedings vigorously."
The allegations could lead to a stoppage of funds from institutions financing the projects, said Sameer Kalra, Founder, Target investing. “Besides, the firm may have to pay a large penalty if it is found guilty," he said.
Kalpataru Power was trading at Rs 440.25, down by Rs 33.75, or 7.12 percent at 1340 IST.
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