PNC Infra Stock Plunges Amid CBI Raids and Bribery Allegations

68
2
PNC Infra Stock Plunges Amid CBI Raids and Bribery Allegations

PNC Infra Share Price Falls Amid Bribery Investigation

Shares of construction engineering company PNC Infra took a hit on Tuesday, falling 10% to Rs 471.05 per share on the Bombay Stock Exchange (BSE). This decline followed reports that the Central Bureau of Investigation (CBI) conducted searches at the company's corporate office and the residences of its managing director and whole-time director. Additionally, the CBI arrested four PNC Infra employees in connection with a bribery case.

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

PNC Infra confirmed the news and stated in an exchange filing that the CBI conducted searches at the residences of its managing director and whole-time director, as well as at the company's corporate office in Agra, registered office in New Delhi, and other offices on June 8, 2024. The company also confirmed the arrest of four of its employees and an NHAI consultant and resident engineer.

While PNC Infra has maintained its commitment to law-abiding practices, historically, companies found guilty of bribery have faced bidding bans ranging from 1 to 3 months. Analysts at ICICI Securities believe there could be an interim overhang on the stock until clarity and a final decision from NHAI are reached.

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

At the time of writing, the stock was trading 7% lower at Rs 484.40, compared to a 0.08% decline in the BSE Sensex.