Shares of NMDC Steel hit a 5 per cent upper circuit for the third straight session and were trading at Rs 34.95 on BSE on Wednesday. The market cap of the firm rose to Rs 10,242.47 crore.
The stock made its Dalal Street debut on Monday and listed at Rs 30.25 per share. Later it hit an upper circuit of 5% to settle at Rs 31.75. NMDC Steel Limited (NSL) demerged from state-run miner NMDC in October 2022. Shareholders were allotted one share of NSL for each NMDC equity share held.
“GOI currently holds 60.793 of the total equity share capital of the Company. It has now been informed that pursuant to the strategic disinvestment of the Company (i) GOI shall sell a such number of shares representing 50.793 of the equity share capital of NMDC Steel Limited, along with transfer of management control in NMDC STEEL LIMITED,” NMDC said in a press release.
In December, NMDC told stock exchanges that the government would sell shares, representing 50.793 per cent of the equity share capital of NMDC Steel, along with a transfer of management control.
The demerger of the steel business will reduce the capital intensity and improve the NMDC dividend payout ratio, Sharekhan said in a recent note. “Moreover, a valuation of 3.2 times its FY2025E EV/Ebitda and 0.8 times its FY25E P/BV is attractive and the stock offers a high dividend yield of 8-9 per cent,” said Phillip Capital.
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 and is also setting up a 3 MT integrated steel plant at Nagarnar, Chhattisgarh.
Also read: NMDC Steel shares jump 5% after stock market debut. Full details
