Transformers & Rectifiers (India) Limited (TARIL), a leading transformer manufacturer, has recently received a Notice of Uncontested Sanctions Proceedings from the World Bank. This development relates to alleged irregularities in a past supply order for the Nigeria Electricity Transmission Project. Despite this setback, the company maintains that its overall business operations remain unaffected and projects strong financial performance.

Key Details of the World Bank Notice

• Case Number: Sanctions Case No. 788
• Project: Nigeria Electricity Transmission Project (IDA Credit Nos. 6185-NG and 6186-NG)
• Notice Date: November 4, 2025
• Previous Notice: July 30, 2025 (reportedly not received by TARIL)

Order Details and Timeline

Company's Response and Impact

TARIL has stated its intention to contest the matter and will submit a reply to the World Bank. The company emphasizes that:

1. The debarment is limited to participation in World Bank-funded projects only.
2. TARIL currently has no ongoing or pending orders under such projects.
3. The company believes this action has no material impact on its business operations, financial performance, or future outlook.

Recent Business Developments

1. TARIL has secured a new order worth Rs. 103.45 Crore from Gujarat Energy Transmission Corporation Limited. This order involves the manufacturing of 54 various types of transformers, to be delivered by the next financial year.

2. The company anticipates revenue of approximately Rs. 2,600.00 crore with an EBITDA margin of around 16%.

3. TARIL expects strong order inflow, supported by a pipeline exceeding Rs. 8,000.00 crore.

Company's Stance

TARIL maintains that it has acted in good faith and in compliance with all applicable laws and contractual obligations. The company plans to:

1. Represent its case to the World Bank
2. Prove it is not involved in any illegal or restricted transactions
3. Satisfy the World Bank's requirements to potentially lift the debarment

Conclusion

While facing challenges with the World Bank debarment, Transformers & Rectifiers (India) Limited continues to secure domestic orders and maintain its position as the second-largest transformer manufacturing company in India based on capacity. The company's management remains committed to addressing the World Bank's concerns while focusing on its core business operations and growth. With strong financial projections and a robust order pipeline, TARIL appears poised for continued growth despite the current challenges.

Transformers & Rectifiers (India) Limited, a leading manufacturer of transformers, has submitted its monitoring agency report for the quarter ended September 30, 2025, regarding funds raised through Qualified Institutional Placement (QIP). The report, issued by India Ratings and Research Private Limited, confirms no deviation from the stated objectives of the QIP.

QIP Details and Fund Utilization

The company successfully raised funds through a QIP of 75,18,796 equity shares at ₹665 per share during June 10-13, 2024. The total proceeds amounted to ₹5,000 million, of which ₹2,343.65 million has been utilized across various objectives:

Unutilized Funds and Revised Timeline

The remaining ₹2,656.35 million of unutilized proceeds have been temporarily deployed in fixed deposits, mutual funds, and other investment instruments. The company has revised the completion timeline for all objectives to July 2026.

Issue-Related Expenses

The issue-related expenses amounted to ₹141.78 million, slightly higher than the originally planned ₹111.85 million. This increase has been ratified by the company's Board of Directors.

Recent Developments

In addition to the QIP fund utilization report, Transformers and Rectifiers (India) Limited has recently secured an order worth ₹103.45 crore from Gujarat Energy Transmission Corporation Limited. The order involves manufacturing 54 various types of transformers, with delivery expected by the next financial year.

The company has also disclosed receiving a Notice of Uncontested Sanctions Proceedings from the World Bank regarding alleged irregularities in a past supply order for a project in Nigeria. While the company maintains that it has acted in good faith and compliance with all applicable laws, it is taking steps to address the allegations and seek an opportunity for review.

Transformers and Rectifiers (India) Limited continues to demonstrate its commitment to transparency and regulatory compliance by providing timely updates on its financial activities and corporate developments.