Shares of PNC Infratech rose over on December 26 following a favourable order from the Delhi High Court. The court directed the Ministry of Road Transport and Highways (MoRTH) and the National Highway Authority of India (NHAI) to reconsider the company’s disqualification order within 4 weeks, easing concerns over potential business disruptions.
PNC Infratech faced a significant setback on October 18 when MoRTH disqualified the company and two of its Special Purpose Vehicles (SPVs) from participating in tenders for one year. The company challenged this decision through legal channels, first via a writ petition and later through a Letters Patent Appeal (LPA) to a Division Bench of the Delhi High Court in November.
The Division Bench has now directed MoRTH and NHAI to reconsider the disqualification order as expeditiously as possible, ideally within four weeks. The appeal has been disposed of, and the court’s direction ensures no immediate impact on PNC Infra’s ongoing operations or projects.
As of September 30, PNC Infratech boasts an unexecuted order book of over ₹19,900 crore, surpassing its market capitalisation of ₹8,200 crore. Notably, contracts with MoRTH and NHAI constitute 33% of the total order book. Despite shares being down 10% year-to-date, the company’s robust order pipeline includes three EPC contracts worth ₹6,670 crore.
As of December 26, 2024, 12:39 PM, the shares of PNC Infratech are trading at ₹314.30 per share with a surge of 2.01% from its previous day’s closing price. Over the last month, the stock has seen a surge of 4.66%. While over the year the stock has declined by 10.58% the stock has a 52-week high and 52-week low of ₹574.80 per share and ₹281.60 per share respectively.
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Published on: Dec 26, 2024, 2:25 PM IST
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