Shares of PNC Infratech Ltd soared 7% on 3 June after the company’s subsidiary, PNC Kanpur Highways Ltd, announced receiving a payment of Rs 390.62 crore from the National Highways Authority of India (NHAI). 

The company, in its regulatory filing, said that this was made under the Government of India’s ‘Vivad Se Vishwas II (Contractual Disputes)’ Scheme and executed on 9 May 2024.

The total settlement amount has been agreed upon at Rs 398.60 crore, from which tax deductions at source (TDS) have resulted in a net receipt of Rs 390.62 crore. 

This agreement falls under Section 73(2) of the Arbitration and Conciliation Act 1996. On May 31, 2024, the resolution of contractual disputes between NHAI and PNC Kanpur Highways Ltd was finalised, signifying a significant milestone.

PNC specialises in the execution of large-scale EPC contracts, with a specific focus on North and Central India. Nuvama Institutional Equities states that PNC has solid credentials due to its conservative bidding strategy, which centres around project location clustering, a strong asset base, and efficient working capital management.

To safeguard against any potential slowdown in the roads sector and to explore new growth opportunities, PNC is gradually expanding into areas such as airport runways and water supply.

At 3:30 pm, the shares of PNC Infratech closed 5.30% higher at Rs 545.35 on NSE.