NMDC Shares Plunge 20% Amidst Demerger Of Its Steel Business
The shares of NMDC Limited plunged close to 20 per cent on Thursday, hitting its 52-week low of ₹ 92.25. The stocks regained some stability as the day's trade progressed and closed at ₹ 104. 60 after dropping close to ₹ 26 per share from Tuesday's closing figure.
The slump, in NMDC share prices, comes in the backdrop of the company demerging its steel business. The Ministry of Corporate Affairs (MCA), earlier this month, gave the green signal for the demerger of NMDC Steel, a three million steel plant in Chhattisgarh, from the state-owned iron-ore minor.
NMDC has fixed Friday, October 28, as the record date for identifying shareholders of the demerged company to whom the shares of the new entity will be allotted. Investors holding NMDC Ltd.'s shares on the record date will be eligible for the new entity's shares.
NMDC shareholders will be eligible to get one share of NMDC Steel for every equity share held. However, the scheme won't be applicable for shares bought after Tuesday, October 25. The NMDC shares dropped more than 2 per cent on Tuesday before witnessing some recovery to close at Rs 130.95 per share.
The state-owned miner will be listing its steel entity, NDMC Steel, on the stock exchanges, after obtaining the requisite approvals. The in-principal approval for the demerger and disinvestment in the steel entity was given in October 2020 by a Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
