HG Infra Engineering Stock Crashes After CBI, ACB Raids Over Corruption Allegations
Shares Fall Up to 16% as Investors React to Investigation News
Company Assures Business Operations Continue Despite Ongoing Probe
By Our Business Reporter
New Delhi: January 23, 2026:
The stock market witnessed sharp volatility on January 23, 2026, as shares of HG Infra Engineering Ltd., a leading infrastructure company, plunged by as much as 16% intraday following news of raids by the Central Bureau of Investigation (CBI) and the Anti-Corruption Bureau (ACB). The raids, conducted on January 21, 2026, targeted the company’s corporate office in Jaipur, its regional office in Gurugram, and a project site in Bihar.
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The investigation, linked to alleged corruption under the Prevention of Corruption Act, has raised concerns among investors, leading to a steep fall in the company’s market capitalization. Despite the setback, HG Infra has assured stakeholders that its business operations remain unaffected and that it is fully cooperating with authorities.
Background of the Raids
- Date of Raids: January 21, 2026
- Agencies Involved: CBI and ACB, Patna
- Locations: Jaipur corporate office, Gurugram regional office, and Bihar project site
- Duration: The search operations began at 6:10 PM and continued until 1 AM the next day.
- Allegations: Corruption charges under the Prevention of Corruption Act.
HG Infra confirmed the raids in a filing to the stock exchanges, stating that it had provided all clarifications and documents requested by the investigating agencies.
Market Reaction
The raids triggered panic among investors, leading to a sharp sell-off:
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- Stock Price Impact: Shares fell 7% initially, later extending losses to 16% intraday, closing at around ₹616.30.
- Market Capitalization: The company’s market cap dropped significantly, erasing hundreds of crores in investor wealth.
- Investor Sentiment: Concerns over regulatory scrutiny and corruption allegations weighed heavily on market confidence.
Analysts noted that while HG Infra maintains a strong order book of ₹13,933 crore, the uncertainty surrounding the investigation has overshadowed its fundamentals.
Company’s Response
HG Infra Engineering issued a statement emphasizing:
- Cooperation: The company is fully cooperating with the CBI and ACB.
- Operations Unaffected: Business activities, including ongoing projects, continue without disruption.
- Financial Impact: The company said the financial impact of the raids is not quantifiable at present.
This reassurance was aimed at calming investor nerves, but market volatility persisted as traders awaited further clarity on the investigation.
Why This Case Matters
- For Investors: The case highlights the risks of regulatory action on stock performance.
- For Infrastructure Sector: HG Infra is a major player in road, bridge, and flyover construction; scrutiny could affect future contracts.
- For Governance: The raids underline the government’s focus on tackling corruption in public infrastructure projects.
- For Market Stability: Such events show how quickly investor sentiment can shift in response to legal developments.
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Wider Implications
- Gigantic Order Book: Despite the controversy, HG Infra’s strong order pipeline suggests long-term resilience.
- Regulatory Oversight: The case may prompt stricter monitoring of infrastructure firms engaged in government contracts.
- Investor Caution: Retail and institutional investors may adopt a wait-and-watch approach until the probe concludes.
- Sector Impact: Other infrastructure companies could face increased scrutiny, affecting stock valuations across the sector.
Conclusion
The sharp fall in HG Infra Engineering’s stock following CBI and ACB raids highlights the fragile balance between corporate performance and regulatory oversight. While the company insists that operations remain unaffected and continues to cooperate with authorities, investor sentiment has taken a hit.
This case serves as a reminder that in India’s infrastructure sector, transparency and compliance are as critical as execution capacity. The outcome of the investigation will determine whether HG Infra can restore investor confidence and maintain its growth trajectory.
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