NMDC trades under pressure ahead of record date for demerger

25 Oct 2022 , 11:46 AM

NMDC Limited’s counter remained under pressure in Tuesday’s trading session, it being the last date to acquire shares of the company in order to be eligible to receive shares of the demerged steel entity.

Earlier this month, the government approved the demerger of the steel company from the state-owned iron-ore miner into a separate listed corporation called NDMC Steel.

In this regard, the company has designated October 28 as the record date. Any investor who had shares delivered to their Demat account on the specified date would be considered eligible for a stake in the new firm.

Each qualified investor would get one share of NDMC Steel with a face value of Rs10 for every share of NDMC with a face value of Rs1.

Any investor purchasing shares after Tuesday, October 25, will be ineligible for NDMC Steel shares and must purchase them on the open market. On Wednesday, October 26, stock markets will be closed.

The order was issued by the Ministry of Corporate Affairs (MCA) on October 6 and received by NMDC on October 11. NMDC Steel would get assets worth Rs18,650 crore and liabilities at Rs1,602 crore.

The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, gave its in-principle consent to the demerger of the steel factory from NMDC, as well as the strategic disinvestment of the steel business, in October 2020.

At around 11.48 AM, NMDC was trading at Rs130.65 down by 0.23% from its previous closing of Rs130.95 on the BSE. The scrip opened at Rs130.95 and touched intraday high and low of Rs131.30 and Rs128.15 respectively.

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