Shares of NMDC Steel got listed on BSE and NSE on Monday after demerger of steel business of NMDC. listed on the stock 37.75 per share. The government had last month received in-principle approval from BSE for listing of NMDC Steel Limited (NSL).
Currently, the government holds 60.79% stake in NSL, which is a steel manufacturing facility IndiaIndia’s largest iron ore producer NMDC is located in Nagarnar, Chhattisgarh.
The company is up for privatisation, with the government looking to sell 50.79% of its stake along with management control. DIPAM secretary Tuhin Kanta Pandey said on January 27 that the government has received several initial bids for privatization of NMDC Steel and the transaction will now move to the second phase. The government had invited initial bids or expression of interest (EOI) for the strategic sale on December 1, 2022, and the last date for bidding was January 27.
NMDC had said in July last year that its board has approved the scheme of arrangement between the companies. NMDC Steel, and their respective creditors and shareholders, who were required to inter alia demerger Nagarnar Iron and Steel Plant (NISP). Under this plan, the NISP plant at Nagarnar, Chhattisgarh will be demerged from NMDC into NMDC Steel (NSL), a wholly owned subsidiary of NMDC.
In October 2022, NMDC Share Started trading without demerger. The eligible investor (holder as on October 25, 2022) received one share of NMDC Steel of face value 10 each, for each share of face value of Rs.1 each held in NMDC.
In October 2020, the CCEA gave ‘in-principle’ approval to the demerger of Nagarnar steel manufacturing unit from NMDC and the strategic disinvestment of the resulting entity by selling the entire Government of India stake. Incorporated in 1958 as a Government of India Public Sector Enterprise, NMDC is the largest producer of iron ore in India.
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