PNC Infratech Ltd Shares Plunge 20% Today: Key Factors Behind the Drop
NSE:PNCINFRA : Rs.366.80 (-20.00%)
Shares of PNC Infratech Ltd. dropped by as much as 20% on Monday, October 21, after the company and its two subsidiaries were disqualified by the Ministry of Road Transport & Highways. The disqualification, announced on Saturday, bars them from participating in any ministry tender process for one year, starting October 18, 2024.
In a filing to the stock exchange, PNC Infratech confirmed the ban, which applies to the company and its subsidiaries, PNC Khajuraho Highways Pvt. Ltd. and PNC Bundelkhand Highways Pvt. Ltd. They were summoned by the ministry for a personal hearing on October 18, in connection with an FIR and charge sheet filed by the CBI in June and August of this year.
The company stated that the disqualification will not affect ongoing development, construction, or operations and maintenance activities. However, the impact on other operations is being assessed and will be communicated later.