Shares of PNC Infratech hit a 20 percent lower circuit at Rs 366 on October 21 after the Ministry of Road Transport & Highways disqualified the company and its two subsidiaries from participating in any of the ministry's tenders.
In an exchange filing, PNC Infratech stated that it has been barred from tender processes for one year, effective October 18, 2024. The disqualification also applies to its subsidiaries, PNC Khajuraho Highways and PNC Bundelkhand Highways. The companies were summoned by the ministry for a personal hearing on October 18, following the FIR and charge sheet filed by the CBI in June and August 2024.
The company clarified that ongoing development, construction, and operations & maintenance (O&M) activities would remain unaffected, while it will assess and communicate any potential impact on other operations.
Despite the setback, PNC Infratech recently secured two significant orders worth Rs 4,630 crore from the Maharashtra State Road Development Corporation.
The first contract, valued at Rs 2,268 crore, involves building the access-controlled Pune Ring Road. The second, worth Rs 2,362 crore, includes constructing a connector expressway to the Hindu Hrudaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg from Jalna to Nanded. Both projects are slated for completion within 30 months under engineering, procurement, and construction (EPC) models.
Over the past three months, PNC Infratech’s stock has fallen more than 27 percent, underperforming the Nifty 50 index, which rose 1 percent in the same period. Of the 16 brokerages covering the stock, 12 have issued a 'buy' rating, 3 have a 'hold' rating, and 1 has a 'sell' rating.
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