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Shares of NMDC Ltd rallied more than 15% to ₹107.9 apiece on the BSE in Thursday’s early trading session, a day ahead of the record date for the company’s demerger of the steel business. Earlier this month, the Ministry of Corporate Affairs (MCA) approved the demerger of NMDC Steel, a three-million tone steel plant in Chhattisgarh, from NMDC Ltd.
The company fixed Friday, October 28, 2022 as the record date for the purpose of identification of shareholders of the demerged company to whom the shares of the resulting company would be required to be issued and allotted by the resulting company pursuant to the scheme.
NMDC shareholders will be eligible to get one share of NMDC Steel for every equity share held. The company will separately be listing its steel entity named NDMC Steel on the stock exchanges, after obtaining the requisite approvals.
“This is to inform you that the Company is in receipt of the MCA Order dated 06.10.2022 received on 11.10.2022 sanctioning the Scheme, and the same is annexed to this letter. Request you to kindly take the same on record and oblige,” NMDC said in a communication to the BSE. NMDC is in the process of demerging its three-million Greenfield steel plant it built at Nagarnar in Chhattisgarh with an investment outlay of over ₹20,000 crore.
Incorporated in 1958 as a Government of India public enterprise, NMDC is India’s largest producer of iron ore. Since inception, the corporation under the administrative control of the Ministry of Steel, has been involved in the exploration of a wide range of minerals including copper, rock phosphate, limestone, magnesite, diamond, tungsten and beach sands amongst others
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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