Shares of PNC Infratech Ltd hit a 20% lower circuit on 21 October after the company and its two subsidiaries were banned from participating in any of the ministry’s tenders from the Ministry of Road Transport & Highways. 

In its regulatory filing the company said that effective 18 October, they have been banned from the tender process for one year. The ban aso applied to its two subsidiaries, PNC Bundelkhand Highways and PNC Khajuraho Highways. The companies were called on by the ministry for a personal hearing on 18 October, which comes after the FIR and charge sheet filed by the CBI in June and August 2024.

However the company issued a clarification that the ongoing development, construction, and operations & maintenance (O&M) activities will not be affected, while they assess and communicate any potential impact on other operations. 

Despite the unfortunate development, the company bagged two significant orders from the Maharashtra State Road Development Corporation worth Rs 4,630 crore. 

1. The first contract is worth Rs 2,268 crore, which is for building the access-controlled Pune Ring Road. 
2. The second contract is worth Rs 2,362 crore, which is for constructing a connector expressway at the Hindu Hruday Samrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg from Jalna to Nanded.

Both the projects are under the engineering, procurement, and construction (EPC) models and have to be completed in 30 months. 

At 11:29 am, the shares of PNC Infratech were locked 20% lower at Rs 366.80 on NSE.

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