Ashoka Buildcon shares decline 6% after temporary NHAI bids suspension after NH-66 incident

Shares of Ashoka Buildcon Ltd.declined 6% on Friday, November 28, after the company said the National Highways Authority of India (NHAI) has temporarily suspended it from participating in ongoing and future bids.

The NHAI's suspension is for a period of one month or until the Expert Committee completes its investigation on the fall of two precast PSC girders on the six-lane elevated corridor from Aroor to Thuravoor Thekku section of the NH-66.

One of the girders fell on a commercial vehicle, which turned out to be fatal for the driver.

Ashoka Buildcon said it received the show-cause notice from the NHAI on Wednesday, November 26.

"The company respectfully denies the allegation that public safety was endangered. The incident in question resulted from circumstances that were sudden, unforeseeable, and not attributable to any lapse in the company's safety practices," Ashoka Buildcon said in an exchange filing on Thursday.

It said the incident occurred because of the sudden failure of a hydraulic jack, which was caused by internal seal damage. It said the girder fell on a moving goods vehicle that had entered a prohibited construction zone.

Ashoka Buildcon added that it has consistently implemented and maintained all safety precautions and protocols in line with good industrial practices, contractual requirements and applicable codes and safety measures.

It said it is in the process of ascertaining the financial impact of the incident and will notify the exchanges regarding the same in due course of time. All its other operations remain unaffected, it added.

Shares of Ashoka Buildcon were down 4% higher at ₹176.69 apiece. The stock has declined 42.3% this year, so far.

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