PNC Infratech shares surge 10% after regulatory relief from MoRTH

Disqualification period imposed on company, two SPVs reduced from one year to four months

Shares of PNC Infratech surged as much as 10 per cent on Monday following regulatory relief from the Ministry of Road Transport and Highways (MoRTH). The stock peaked at Rs 324 before retreating to close at Rs 300, marking a 1.8 per cent increase over the previous day’s close.

 

In an order issued on February 6, MoRTH reduced the disqualification period imposed on PNC Infratech and two of its special purpose vehicles (SPVs) from one year to four months. According to the revised order, the restriction period will now end on February 17, subject to the completion of certain procedures by PNC Infratech with the National Highways Authority of India (NHAI). Once these procedures are completed, PNC Infratech will be able to actively pursue new projects in the infrastructure sector.

 

As of September 30, 2024, PNC Infratech had an order book valued at nearly Rs 20,000 crore, comprising various engineering, procurement, and construction (EPC) projects under construction. These projects include the Prayagraj–Kaushambi project with MoRTH, the Jalna–Nanded and Pune ring road projects with the Maharashtra State Road Development Corporation, and the Akkalkot Pkg-II (Badadal–Maradgi S), Sonali–Gorukhpur, and Kanpur–Lucknow Expressway Pkg-2 with NHAI.

 

Road highway, road expressway, railway, and canal EPC projects account for 84 per cent of its total order book.

 

Recently, PNC Infratech received in-principle approvals from NHAI to transfer its 100 per cent stake in two subsidiaries (SPVs) for the Bundelkhand and Khajuraho road projects to the KKR-backed Highways Infrastructure Trust.