Shares of Ashoka Buildcon Ltd. slipped nearly 6% on Friday, November 28, after the National Highways Authority of India (NHAI) temporarily suspended the company from participating in all ongoing and future bids. The suspension will remain in force for one month or until the Expert Committee completes its inquiry into a recent safety incident.
The action follows the fall of two precast PSC girders at the six-lane elevated corridor project between Aroor and Thuravoor Thekku on NH-66. One of the fallen girders hit a commercial vehicle passing below, resulting in the death of the driver, prompting the NHAI to issue a show-cause notice to the company on November 26.
In a filing on Thursday, Ashoka Buildcon said it “respectfully denies” allegations that it endangered public safety. The company explained that the incident was triggered by a sudden and unforeseeable failure of a hydraulic jack due to internal seal damage, adding that the goods vehicle involved had entered a restricted construction zone.
Ashoka Buildcon further said it has consistently followed all necessary safety measures, codes, and contractual protocols, maintaining that the circumstances were beyond its control. The company stated that it will fully cooperate with the investigation.
The temporary suspension and ongoing probe weighed on investor sentiment, leading to today’s decline in the stock.
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