NMDC-NMDC Steel demerger's record date for issuance of new shares is October 28th

17 Oct 2022 , 08:08 AM

The industrial minerals firm set the record date for evaluating the eligibility of company shareholders who will be eligible for the issuing of the equity shares of the resulting company as October 28 on Thursday after the government approved the demerger of NMDC Steel from NMDC.

“This is supplementary to our letter dated 11.10.2022, regarding the Ministry of Corporate Affairs’  (MCA) acceptance of the Scheme. In order to identify the shareholders of the Demerged Company to whom the shares of the resulting company would need to be issued and allocated by the resulting company in accordance with the Scheme, the Board of Directors of the Company fixed the record date as Friday, the 28th day of October 2022, at their meeting held on October 13, 2022, according to the filing with the exchange.

As previously stated, the business would issue one share for each share owned in the demerged company, NMDC, to form the new company, NMDC Steel. “Upon the effective date of this Scheme, and in consideration of the transfer and vesting of the Demerged Undertaking in the resulting company, the resulting company shall, without further application, act, instrument or deed, issue and allot to all the equity shareholders of the demerged company, whose names appear in the register of members as on record date, 1 (one) equity share of the resulting company of Rs10 each fully paid-up for every 1 (one) equity share of the Demerged Undertaking,”

Remember that as of October 25 at the latest, stockholders may purchase NMDC stock, as October 26 is a holiday for Diwali-Balipratipada, in order to be eligible to obtain shares of the emerging corporation as part of the demerger.

In Chhattisgarh, NMDC is in the midst of demerging its three million square foot greenfield steel facility.

The public company, which was established in 1958, is the biggest iron ore producer in the nation. Since its founding, it has worked in some of the most distant regions of the nation to explore a variety of minerals, including copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands, among others.

Finally, NMDC’s shares closed up almost 3% at Rs 132.2 per share.

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