- NCC's unit OB Infrastructure was debarred by NHAI for two years from tenders
- The debarment started on February 17, affecting future tender participation
- NCC said no impact on current projects or existing order book is expected
NCC Ltd. share price saw dramatic swings during early trade on Thursday after a company unit received a debarment order from the National Highways Authority of India.
O B Infrastructure Ltd., a step-down subsidiary of NCC, has been debarred from participating in any tender or bids issued by NHAI for a period of two years with effect from Feb. 17, according to a stock exchange filing released after market hours on Wednesday.
The company is reviewing the order and will take appropriate steps as per applicable law, NCC said, adding that there is no impact on the existing order book or ongoing projects. "The impact, if any, on future tenders will depend on business opportunities arising during the debarment period. At present, no quantifiable financial impact can be ascertained," the filing said.
There are few other disputes between OBIL and NHAI in respect of execution and maintenance of the Orai–Bhognipur Section on NH-25 and Bhognipur–Barah Section on NH-2 (New NH-27) in Uttar Pradesh.
OBIL has initiated arbitration proceedings against NHAI with respect to those disputes in September 2025. NHAI has initiated the present debarment proceedings during the pendency of the arbitral proceedings. OBIL is contending that the said debarment order has been issued after completion of the concession period without providing the opportunity of being heard, in violation of principles of natural justice and shall challenge the same as per the law, NCC said.
NCC Share Price Movement
Shares of NCC tanked nearly 10% to hit a 52-week low of Rs 135 on the NSE, before paring losses to briefly trade in green. The benchmark Nifty 50 was down 0.2%. The total traded volume so far in the day stood at 20 times its 30-day average with a turnover of Rs 207 crore. The relative strength index was 44.
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