NMDC Steel’s Shares Get Listed on BSE and NSE
NMDC Steel, the steel manufacturing facility of India’s largest iron ore producer, NMDC, recently got listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The company got listed at ₹37.75 per share after the demerger of NMDC’s steel business. The government, which currently holds a 60.79% stake in NMDC Steel, is looking to privatize the company by selling 50.79% of its shareholding along with management control.
Tuhin Kanta Pandey, the Secretary of the Department of Investment and Public Asset Management (DIPAM), confirmed that the government had received multiple preliminary bids for the privatisation of NMDC Steel. The transaction will now move to the second stage, and the government had invited preliminary bids or expressions of interest (EoI) for the strategic sale on December 1, 2022. The last date for putting in bids was January 27, 2023.
NMDC announced the demerger of Nagarnar Iron & Steel Plant (NISP) in July last year, which entailed the demerger of the NISP plant at Nagarnar, Chhattisgarh, from NMDC to NMDC Steel. The scheme of arrangement between the company, NMDC Steel, and their respective creditors and shareholders was approved by the board.
In October 2022, NMDC shares started trading ex-demerger. Eligible investors received one share of NMDC Steel bearing a face value of ₹10 each for every share held in NMDC of face value of Re 1 each.
NMDC was incorporated in 1958 as a Government of India public enterprise and is India’s largest producer of iron ore. The Cabinet Committee on Economic Affairs (CCEA) gave its ‘in-principle’ approval to the demerger of the Nagarnar steel manufacturing unit from NMDC and strategic disinvestment of the resulting entity by selling the entire stake of the Government of India in October 2020.
National Mineral Development Corporation (NMDC), a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India is the single largest producer of iron ore in India. It owns and operates highly mechanized iron ore mines in Chhattisgarh and Karnataka and has its registered office at Hyderabad, Telangana. NMDC is considered to be one of the low-cost producers of iron ore in the world. NMDC is also setting up a 3 MT integrated steel plant at Nagarnar, Chhattisgarh.
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