KEC International Limited , a prominent player in the power transmission and distribution sector, faces continued challenges as Power Grid Corporation of India Limited (PGCIL) maintains its exclusion order despite Delhi High Court directions. The company had initially received relief when the court stayed the exclusion order, but recent developments indicate the matter remains unresolved.

PGCIL Issues Supplementary Order

Following the Delhi High Court's directions, PGCIL has issued a supplementary order maintaining its original decision to exclude KEC International from tenders.

High Court Intervention and Current Status

The Delhi High Court had previously provided significant relief to KEC International through its intervention in the exclusion matter.

Company's Response and Strategy

KEC International has disclosed that it is examining PGCIL's supplementary order for taking appropriate judicial recourse. The company maintains that despite the ongoing legal challenges, it does not envisage any significant impact on its operations and financial position, citing its strong order book and robust tender pipeline as mitigating factors.

Business Impact Assessment

The company has reiterated its position regarding the potential business impact of the exclusion order.

Corporate Governance and Compliance

KEC International has emphasized its commitment to maintaining the highest standards of corporate governance throughout this legal challenge. The company stated that it upholds ethics and compliance in all operations, conducting business with integrity, transparency, and adherence to applicable laws and regulations.

Market Outlook

While the supplementary order from PGCIL represents a setback following the initial court relief, KEC International's strong financial position and diversified order book provide stability during this challenging period. The company's decision to pursue further judicial recourse indicates its confidence in challenging the exclusion order through proper legal channels.

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.