te NMDC shares trade in green as investors welcome demerger nod for steel business | Zee Business

NMDC shares trade in green as investors welcome demerger nod for steel business

At 11:30 am, NMDC shares were quoting a price of Rs 132 apiece on the NSE after gaining 1 per cent

NMDC shares trade in green as investors welcome demerger nod for steel business
The scrip made an intraday high of Rs 134.70, gaining nearly 2 per cent

NMDC share price on Wednesday gained as investors turned optimistic following the news of the demerger approval by the Ministry of Corporate Affairs (MCA). The state-run mining giant in a late evening exchange filing on Tuesday informed that the MCA has approved the demerger of NMDC Steel. NMDC is a PSU iron-ore miner and the government has plans to demerge its steel unit. The government holds a 60.79 per cent stake in NMDC. The steel business will be listed separately on the bourses.

At 11:30 am, NMDC shares were quoting a price of Rs 132 apiece on the NSE after gaining 1 per cent. The scrip made an intraday high of Rs 134.70, gaining nearly 2 per cent. On BSE, NMDC shares were trading at Rs 132.50, up by around 1.80 per cent.

According to the company communique, it has received the orders of the MCA and that it was in the process of complying with the requirements as envisaged in the order dated October 6. Earlier in 2020, the Cabinet Committee on Economic Affairs had given an in-principle nod to the demerger of the steel business from NMDC. Besides, the Cabinet had also granted in-principle approval for the disinvestment of the steel business.

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As a part of the demerger scheme, NDMC's assets worth Rs 18,650 crore and liabilities worth over Rs 1,600 crore will be demerged to NMDC Steel. NMDC shareholders will be eligible to get one share of NMDC Steel for every equity share held.

According to a last month's Zee Business report, major steel companies like JSW Steel, POSCO, Jindal Steel and ArcelorMittal are likely to bid for the NMDC. The bidding process will likely start in December.

NMDC has yielded a negative return of over 20 per cent in the last 6 months. NMDC stock price 52-week range is Rs 175.35 - Rs 99.60.

Reported By: ZeeBiz WebTeam
Written By: Sirali Gupta
Edited By: Abhinav Ranjan
Updated: Wed, Oct 12, 2022
02:37 pm
Mumbai, ZeeBiz WebDesk
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