Shares of PNC Infratech Ltd skyrocketed 10% on 10 February after the company, along with its two subsidiaries, been given relief by the Ministry of Road Transport and Highways (MoRTH) to participate in the bidding procedure, which significantly shortened the time of disqualification.
MoRTH’s order on PNC Infra, dated 6 February 2025, reduced the period of disqualification (debarment) from one year to four months from the date of the initial debarment judgment dated 18 October 2024, subject to NHAI proceedings.
The MoRTH directive is expected to expire in February 2025, four months after it was passed, according to the reduced bidding restriction.
MoRTH had prohibited the company and two of its subsidiaries from using the Ministry’s tender process on 18 October 2024 for a period of one year. The business later challenged this ruling.
On 21 November 2024, PNC Infra filed a representation with the MoRTH, requesting that the disqualification judgment be reversed after the Delhi High Court dismissed the ruling on 29 October 2024.
The company, in its filing, said, “In response to the above, MoRTH vide its order dated 06.02.2025 reduced the period of disqualification (debarment) from I year to 4 months from the date of original debarment order i.e. 18.10.2024 subject to completion of certain procedures with NHAI.”
Late last year, the Delhi High Court mandated that MoRTH and NHAI investigate rescinding the corporation’s prior disqualification decision within four weeks.
As announced in December 2024, PNC Infra’s appeal has been settled, and the disqualification ruling will not have any detrimental effects on the company’s operations. “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.”
As of 30 September, the company had three EPC contracts worth a total of Rs 6,670 crore. This means that the unexecuted order book is worth more than Rs 19,900 crore, which is greater than its market value. Shares of PNC Infratech, which is valued at over Rs 8,000 crore on the market, have fallen 20% in the last year and 4% so far this year.
At 11:52 am, the shares of PNC Infra were trading 4.10% higher at Rs 306.25 on NSE.
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