NMDC Split News: Record Date, Share Ratio Announced; Should I buy?

Record date of NMDC split 2022, NMDC split ratio: National Mineral Development Corporation (NMDC) Limited announced the record date of the split. The government has planned to demerge the steel unit of iron miner PSU. The government holds a 60.79% stake in NMDC. According to an exchange filing by the company on Thursday, the NMDC board of directors has set October 28 as the record date for the purpose of identifying the shareholders of the splitting company (NMDC) to whom the shares of the resulting company (NMDC Steel) would be issued.

The public company under the Ministry of Steel is headquartered in Hyderabad. It is also the largest iron ore producer in the country.

Under the spin-off scheme, recently approved by the Ministry of Corporate Affairs (MCA), NDMC’s assets worth Rs 18,650 crore and liabilities worth over Rs 1,600 crore will be split into NMDC Steel. The Ministry of Steel had in March this year approved the split.

NMDC shareholders will be able to obtain one share of NMDC Steel for each share held. The steel business will be listed separately on stock exchanges.

According to Zee Business panelist and market expert Siddharth Sedani, NMDC is a good buy. He suggested buying the stock in segments.

As of 1:30 p.m., NMDC shares were trading at Rs134 each, up nearly 4% from its previous close of Rs129 on the NSE. On BSE, the stock quoted a price of Rs 133.95. So far, NMDC has recorded a negative return of more than 10% in 2022. The company’s dividend yield is 11.02%. The 52-week range of NMDC stock is Rs 175.35 to Rs 99.60.

The current market capitalization of the company is Rs 39,21,150.63 crore, according to the NSE website.

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Sallie R. Loera