PNC Infratech was suffering on the bourses on Monday after the Ministry of Road Transport & Highways (MoRTH) took action against the company.

What Happened: PNC Infratech in a regulatory filing on Saturday said the road ministry barred the company and two of its subsidiaries from participating in any tenders from the ministry for a year. 

The decision came after the Central Bureau of Investigation filed a first information report and chargesheet against the company in June and August 2024. The MoRTH summoned the company and the subsidiaries with for a hearing on October 18. The ban was made after the meeting. 

The ban will be in place for a year from October 18. The company and its subsidiaries, PNC Khajuraho Highways Private Limited and PNC Bundelkhand Highways Private Limited have been disqualified from the tender process. 

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The company said the decision will have no impact on ongoing development, construction and operations and maintenance activities. 

In Q1, the company guided an order intake of ₹8,000 crore to ₹10,000 crore for FY2025. The company posted an unexecuted order book of ₹ 19,098 crore as of June 30. Out of this, highway, expressway and canal contracts contributed 82% of the order book. 

Price Action: Shares of PNC Infratech plunged 20% to ₹366.80 on Monday.

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