CBI searches PNC Infra offices, summons MD Yogesh Jain; stock slips 10%

PNC Infra share falls: Shares of construction engineering company PNC Infratech slipped 10 per cent to Rs 471.05 per share on the Bombay Stock Exchange (BSE) in Tuesday’s intra-day trade.

The fall came after reports indicated that Central Bureau of Investigation {CBI} conducted search at the company’s corporate office, and at residence of managing director (MD) and whole-time director. CBI also arrested 4 employees of PNC Infra with a linkage on a bribery case.

The media reports indicate that CBI caught two National Highways Authority of India (NHAI) officials accepting bribe of Rs 10 lakh from PNC employees in Madhya Pradesh to obtain final approval, no objection certificate (NOC), and for processing of final bill for NHAI’s Jhansi-Khajuraho project.

“The CBI has arrested National Highway Authority of India (NHAI) general manager Purushottam Lal Choudhary, posted in Madhya Pradesh's Chattarpur, in an Rs 10-lakh bribery case”, the PTI reported quoting officials on Sunday.

The six other accused in the case, including an NHAI consultant Sharad Verma and his resident engineer Prem Kumar Sinha, and four employees of accused company PNC Infratech -- Satyanarayana Anguluri, Brijesh Mishra, Anil Jain and Shubham Jain --, were arrested on Saturday evening, they said. CLICK HERE FOR FULL REPORT

PNF Infra confirmed the news item, and in an exchange filing said, a team of CBI conducted a search at the residence of Yogesh Kumar Jain, managing director and Talluri Raghupati Rao, whole-time director of the company and also at the corporate office, situated at Agra, registered office situated at New Delhi and other offices of the company on June 8, 2024 late night.

The search is completed at all locations now. Satyanarayana Annguluri, Brijesh Mishra, Anil Jain and Shubham Jain, employees of the company were arrested by them.

Detailed information are yet to be awaited for submission of the same with the Stock Exchange.

Further Y K Jain and T R Rao were not arrested as appearing in news media item but summon has been served on Y K Jain, managing director, to appear before CBI Office, New Delhi, PNC Infra said. CLICK HERE FOR STATEMENT

While PNC has stated that it has been law abiding company, Historically, if proven guilty of bribery, companies have been barred from bidding ranging from 1-3 months.

Analysts at ICICI Securities believe there could be an interim overhang until there is clarity and final decision from NHAI is taken.

PNC Infratech has established itself as a strong executor in roads and water infra segments with an overall order book of Rs 20,490 crore.

Despite Tuesday’s fall, thus far in the calendar year 2024, PNC Infratech has outperformed the market by surging nearly 40 per cent, as compared to 6 per cent rise in the BSE Sensex. The stock had hit a 52-week high of Rs 574.50 on May 27, 2024.

At 09:47 AM, the stock was trading 7 per cent lower at Rs 484.40, as compared to 0.08 per cent decline in the BSE Sensex.