PNC Infratech Ltd. shares plummeted 20%, locked in the lower circuit at ₹366.80, a sharp decline of ₹91.70 as of 10:05 AM today. The company’s stock tumbled following the Ministry of Road Transport & Highways (MoRTH) disqualification, which has banned PNC Infratech and its subsidiaries from participating in any tender processes for one year. This announcement sent shockwaves through the market, erasing ₹1,881.97 crore from the company’s total market capitalization.
Reasons for the 20% Drop:
The steep decline follows MoRTH’s disqualification of PNC Infratech, along with its subsidiaries PNC Khajuraho Highways Private Limited and PNC Bundelkhand Highways Private Limited, from participating in tenders for one year. This decision is tied to an ongoing investigation initiated by an FIR filed by the Central Bureau of Investigation (CBI) in June 2024.
Despite being given an opportunity for a personal hearing and submitting evidence in its defense, PNC Infratech was cited for violations related to the investigation, leading to the ban. This disqualification has significantly impacted investor sentiment, resulting in a massive ₹1,881.97 crore market cap loss, bringing the company’s market value down to ₹7,527.89 crore from ₹9,409.86 crore.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
