NMDC stock trades ex-demerger, rallies 15%

New Delhi: Shares of NMDC rallied 15% in Thursday's trade on an adjusted basis after the company demerged its steel business from the core mining business.

The company will separately list its steel entity named NDMC Steel after receiving approval from the government for the same.

The government, earlier this month, had given its nod to demerge the steel business into a separate listed entity from the state-owned iron-ore miner, the company had informed the exchanges.

Shares of NMDC zoomed 15% to Rs 107.25 after adjustment today. The scrip had settled at Rs 93.7 on Tuesday.


The record date for the same is fixed as Friday, October 28, which means that investors holding the delivery of shares as of the given date would be eligible for the stake in the new entity.

Investors, who bought the shares on Tuesday, October 25, will also be eligible for the shares of the new entity, holding the steel business.

The eligible investors will get one share of NDMC Steel of the face value of Rs 10 each, for every share of NDMC held.

Any investor buying shares on Thursday, October 27, would need to buy NMDC Steel stock from the open market. Stock markets observed a holiday on Wednesday, October 26.

Founded in 1958, NMDC is a publicly-run enterprise, under the ownership of the Ministry of Steel, Government of India, and the country’s largest iron ore producer.

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