Shares of PNC Infratech extended its losses on Tuesday after the company said it had taken legal action against a disqualification order issued by the Ministry of Road Transport & Highways (MoRTH).

What Happened: PNC Infratech, along with two of its subsidiaries, has moved to the Delhi High Court seeking a stay on the road ministry’s order, the company said in a press release. This order, issued on October 18, prohibits these companies from participating in any tender processes with the Ministry for a year.

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The companies have requested the court to issue temporary orders to suspend the effect, operation and implementation of the disqualification order until their writ petitions are resolved.

This MoRTH order was issued after a personal hearing related to a first information report and chargesheet filed by the Central Bureau of Investigation, AC III, New Delhi. Shares of the company tanked 20% on Monday after the ministry’s order was passed.

PNC Infratech has said the order will not affect its ongoing operations, including construction and maintenance activities.

“There will not be any impact on the ongoing development, construction, operations and maintenance activities of the Company and its subsidiaries, including the two SPVs on account of the aforesaid Order of MoRTH dated 18.10.2024. However, the impact on other activities, if any will be evaluated and intimated accordingly,” the statement said.

Price Action: PNC Infratech’s shares were down 7.77% to ₹338.30 on Tuesday morning.

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