Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Awaiting price reaction for this filing.
Kalpataru Projects International Limited (KPIL) has disclosed that NHAI has served an Intention to issue Termination Notice on its wholly owned subsidiary, Wainganga Expressway Private Limited (WEPL), alleging default in payment of premium and other issues under a highway Concession Agreement. NHAI has claimed INR 351.46 Cr, which WEPL is disputing. This is the latest in an ongoing dispute: a July 2024 arbitration award had gone in favour of WEPL against NHAI, and NHAI had subsequently appealed it (per the November 2024 update). WEPL believes the notice and claim will not have any significant financial impact, given the arbitration award in its favour and amounts due from NHAI to WEPL. The company is evaluating all available legal options to protect its interests.
The threat of termination of a major highway concession by NHAI is a negative overhang, but the company believes the impact is not material since an earlier arbitration award actually went in WEPL's favour. Investors should watch for further legal updates, as termination could affect future toll revenue from the expressway, even if compensation is eventually recovered.