PNC Infratech Shares Tanks by More Than 8% After CBI Arrests Employee

On June 10, 2024, PNC Infratech issued exchange filings to both the BSE and NSE confirming the recent news time on the arrest of the NHAI GM by CBI for a bribery case of Rs. 10 Lakh in Madhya Pradesh. The company informed the exchange that the arrest was followed by a search conducted at the residences of Mr. Yogesh Kumar, MD, Mr. Talluri Raghupati Rao, the Whole-time director of the company, and several corporate offices in Agra, New Delhi, etc. The search happened on June 8, 2024, and as a result, 4 employees were arrested. Furthermore, the filing clarified that Mr. Y.K. Jain and Mr. T.R. Rao were not arrested but the MD has been issued an order to summon himself to the CBI Office in New Delhi.

PNC Infratech

PNC Infratech Limited (PNCIL) has been India’s infrastructure developer since 1999. It is involved in the construction of highways, airport runways, bridges, flyovers, and power transmission projects among others. PNC Infratech is one of the few infrastructure firms in India with a proven track record of investment, development, construction, operation, maintenance, and management of highway projects across geographies. The company has a strong presence in a 500 km radius of Delhi including states like Uttar Pradesh, Rajasthan, Haryana, Punjab, and Uttarakhand. The clientele of the company includes Central, State and Local Government authorities.

What caused this?

Speculations have risen, that the accused received these bribes for the final handing over as well as the issuance of a no-objection certificate and processing of the final bill of the Jhansi-Khajurao Project awarded to the company, by NHAI. 

Conclusion

This year, the stock of PNC Infratech surged by 35%-45% than last year. However, the recent news created havoc in the market and PNC Infratech’s share price has tanked by over 8.07%, as of today.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.