NMDC Steel shares made a spectacular entry in the stock market today and on the very first day, its shares reached the upper circuit. Its shares are currently on the upper circuit of Rs 31.75 (NMDC Steel Share Price) on BSE with a gain of 4.96 percent. Today on the first day it opened at Rs.30.25. Last year, the National Mineral Development Corporation (NMDC) announced the bifurcation of its business. National Mineral Development Corporation (NMDC) announced to divide its business into two parts. Under this demerger, NMDC and NMDC Steel were announced. The government has demerged the steel unit of NMDC under which NMDC Steel came into existence.
NMDC shareholders have got one share of NMDC Steels
Under the demerger, shareholders of NMDC have been allotted one share of NMDC Steel for every equity share held. The government holds a 60.79 percent stake in NMDC. This company comes under the Ministry of Steel and its headquarter is located in Hyderabad. It is the largest iron ore mining company in the country.
The downtrend in NMDC shares
The effect of the separation of the steel business is visible on NMDC shares. Today there is a bullish trend in the market and BSE Sensex has crossed 61 thousand with an increase. On the other hand, selling pressure is visible in NMDC shares. Currently, it is trading at Rs 119.55 (NMDC Share Price), down 1.32 percent.
The decision to demerger was approved last year
The Ministry of Corporate Affairs (MCA) had last year approved the demerger of NMDC’s steel business in October 2022. A record date of 28 October 2022 was fixed for this proposal. NMDC first disclosed this plan of demerger in July 2021. NMDC is a Navratna company and the only company producing iron ore in the country.
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