HDFC Mutual Fund has announced a significant reduction in its shareholding in KEC International Ltd, with its stake decreasing to 6.93% as of December 22, 2025. The fund house disclosed this information under Regulation 29(2) of SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011.

Shareholding Reduction Details

The mutual fund sold 46,22,581 shares, representing 2.04% of KEC International's paid-up equity share capital through open market transactions. This brings HDFC Mutual Fund's total holding down from 8.97% to 6.93% of the company's equity.

HDFC Schemes Involved

The shareholding reduction involves multiple HDFC Mutual Fund schemes operating under HDFC Trustee Company Limited. The participating schemes include:

• HDFC BSE 500 ETF and Index Fund
• HDFC Dividend Yield Fund
• HDFC Large and Mid Cap Fund
• HDFC NIFTY 500 MULTICAP 50:25:25 Index Fund
• HDFC Hybrid Equity Fund
• HDFC Retirement Savings Fund (Equity and Hybrid-Equity Plans)
• HDFC NIFTY Small Cap 250 ETF and Index Fund
• HDFC Small Cap Fund and Mid Cap Fund

Company's Current Capital Structure

KEC International's paid-up equity share capital currently stands at ₹53.24 crores, comprising 2,66,20,000 equity shares of ₹2 each. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited.

Regulatory Compliance

The disclosure was made by Divya Chouta, Joint Assistant Vice President-Compliance at HDFC Asset Management Company Limited, dated December 24, 2025. HDFC Mutual Fund confirmed that it does not belong to the promoter or promoter group of KEC International. The fund house referenced its previous disclosure from December 5, 2018, when it held 8.97% stake in the company based on the then paid-up equity share capital of ₹51.42 crores.

This transaction represents a strategic portfolio adjustment by HDFC Mutual Fund, reducing its exposure in the infrastructure and engineering company while maintaining a significant minority stake of nearly 7% in KEC International.

KEC International Limited has informed stock exchanges about receiving a GST adjudication order from Rajasthan authorities, marking a regulatory development that the company plans to contest through legal channels.

GST Order Details

The company received the order from GST Authority, Rajasthan on December 22, 2025, as part of a regulatory disclosure made under SEBI listing regulations. The order addresses alleged discrepancies in GST payments based on comparison between different GST return filings.

Financial Implications

The GST order involves significant financial components that the company will need to address through its legal strategy.

Company's Response Strategy

KEC International has outlined its approach to handling the GST order, emphasizing its intention to challenge the demand through proper legal channels. The company stated it is currently reviewing the order details and will seek appropriate legal remedy to contest the demand.

The management has indicated that it does not foresee any material financial impact on account of this order, suggesting confidence in its position regarding the alleged GST discrepancies.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to maintaining transparency with stakeholders regarding regulatory developments that could potentially impact its operations.