Mumbai: Shares of NCC Limited tumbled nearly 10 per cent in intra-day trade on Thursday after the company and its step-down subsidiary faced a two-year debarment order from the National Highways Authority of India (NHAI). The sharp fall dragged the stock to its lowest level in the past one year. The stock slipped 9.85 per cent on the National Stock Exchange (NSE) to Rs 135 apiece, marking a fresh 52-week low.
The decline came after the company informed exchanges about regulatory action taken against it and its subsidiary. In an exchange filing, NCC said that OB Infrastructure Limited (OBIL), its step-down subsidiary, along with NCC, has received a debarment order from NHAI for a period of two years. The order prevents both companies from participating in any tender, bid or request for proposal issued by NHAI.
This includes roles such as concessionaire, contractor, EPC contractor, O&M contractor, O&M agency or consortium member. The restriction is effective from February 17, 2026. The debarment is linked to a highway project in Uttar Pradesh that was executed by OBIL under a 2006 concession agreement on a build-operate-transfer (BOT) annuity basis. According to the company, delays in the project were caused by NHAI’s failure to hand over land on time and other alleged breaches of the contract.
NCC said OBIL had initiated arbitration proceedings over the matter and received a favourable award in November 2024. However, NHAI has challenged the award before the Delhi High Court. The company added that some additional disputes related to the same project are still under arbitration. OBIL has claimed that the debarment order was issued while arbitration proceedings were ongoing and after the concession period had already ended. It also alleged that the order was passed without giving it an opportunity to present its case.
The company said it plans to challenge the debarment in accordance with the law. NCC clarified that there is no immediate financial or operational impact on its existing orders and ongoing projects. However, it admitted that the impact on future tenders cannot be estimated at this stage, as the ban restricts participation in fresh NHAI projects for two years.
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