NMDC soars ex-demerger

27 Oct 2022 , 01:10 PM

The stock is currently trading on an adjusted basis. NMDC will separately list its steel entity named NMDC Steel after receiving the governments approval. The record date for the demerger is 28 October 2022. The eligible investors will get one share of NMDC Steel of the face value of Rs 10 each, for each NMDC share. Investors buying shares after 25 October 2022 will not be eligible for the shares of NMDC Steel. NMDC Steel is in the business of trade, manufacturing, selling, importing and purchasing of stainless steel, silicon, special steel and other allied input or other material. Earlier this month, NMDC received Ministry of Corporate Affairs (MCA) order approving scheme of arrangement for merger of NMDC into NMDC Steel and their respective shareholders and creditors. The scheme was approved by the board of both the companies on 13 July 2021. As a part of the scheme, assets of Rs 18,650.84 crore and liabilities of Rs 1,602.30 crore will be demerged to NMDC Steel. NMDC is Indias single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As of 30 June 2022, the Government of India held 60.79% stake in the firm. The iron ore mining company reported a 54% fall in standalone net profit to Rs 1,469.44 crore in Q1 FY23 as against Rs 3,192.84 crore in Q1 FY22. Net sales was at Rs 4,767.07 crore in Q1 FY23 as against Rs 6,512.21 crore during the same period in the previous year, registering a decline of 26.8%. Powered by Capital Market – Live News