Shapoorji Pallonji Group company Afcons Infrastructure Ltd on Thursday, October 9, said it has bagged a contract worth about ₹576 crore (including GST) for civil and allied infrastructure works as part of its normal course of business.
In a separate regulatory filing, the company informed that it has received an inspection letter under Section 206(5) of the Companies Act, 2013, issued by the office of the regional director, western region, Ministry of Corporate Affairs (MCA).
“The matter is in continuation of the inspection undertaken by the Regional Director in 2024, as disclosed in the prospectus dated October 29, 2024, under the head ‘risk factors’,” the company stated.
The current RD Letter covers additional projects and extends the inspection period up to FY2024–25, from the earlier period of FY2018-19 to FY2022-23. The communication seeks clarifications on certain alleged non-compliances and accounting-related matters for these additional projects.
Afcons said it believes its legal position is robust and that it intends to vigorously defend the matter. “The company shall appropriately respond to the RD Letter,” it added.
Earlier this year, on July 21, the company announced that it had been declared the lowest bidder by HŽ Infrastruktura d.o.o. (HŽ Infrastructure Ltd) for a railway rehabilitation and construction project in the Republic of Croatia.
The Croatian project involves the reconstruction of the existing track and construction of a second one on the Dugo Selo-Novska railway line, including electrification and signalling works, with an estimated value of €677 million (approximately ₹6,800 crore) and a completion timeline of 72 months.
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Shares of Afcons Infrastructure Ltd ended higher on Thursday, October 9, by 1.31% at ₹465.00 on NSE.
