PNC Infratech becomes lowest bidder for highway project, share price zooms 7%

The PNC Infratech share price climbed around 7 percent in the morning trade on March 28 after the company emerged as the lowest bidder for a road project touted by the road transport ministry.

The project involves the construction of a four-lane highway from Singraur Uphar to Baranpur Kadipur Ichauli of NH-731A with paved shoulder in Uttar Pradesh under the hybrid annuity mode, for which PNC Infratech has bid Rs 819 crore for the project.

“The project is to be constructed in 24 months and operated for 15 years, post construction,” the company said in an exchange filing.

At 9.35am, shares of PNC Infratech were trading at Rs 282.30 on the National Stock Exchange (NSE), with gains of 6.5 percent from the previous close. The stock also touched an intraday high of Rs 283.95.

Additionally, nine lakh shares exchanged hands on the exchanges so far, as against a one-month daily traded average of six lakh shares.

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The construction company’s order book at the end of the third quarter stood at Rs 17,842 crore, which is over 2.5 times PNC Infratech’s total revenue in FY22.

“Aside from the robust order book, the company has also won three highway projects and one railway project with a cumulative value of Rs 4,000 crore over the past three weeks. The recent orders will, thus, boost PNC Infratech’s revenue visibility,” brokerage firm ICICIdirect wrote in a note.