NMDC Steel shares list on BSE, NSE today after demerger. Details inside

Currently, the government holds a 60.79% stake in NSL, which is the steel manufacturing facility of India‘s largest iron ore producer NMDC located in Nagarnar, Chhattisgarh.

The company is up for privatisation with the government looking to sell 50.79% of its shareholding, along with management control. DIPAM Secretary Tuhin Kanta Pandey said on January 27 that the government has received multiple preliminary bids for the privatisation of NMDC Steel and the transaction will now move to the second stag. The government had on December 1, 2022, invited preliminary bids or expressions of interest (EoI) for the strategic sale and the last date for putting in bids was January 27.

In July last year, NMDC said its board approved scheme of arrangement between the company, NMDC Steel, and their respective creditors and shareholders, which entailed inter-alia demerger of Nagarnar Iron & Steel Plant (NISP). Under the Scheme, the NISP plant at Nagarnar, Chhattisgarh would be demerged from NMDC to NMDC Steel (NSL),a wholly owned subsidiary of NMDC.

In October 2022, NMDC shares started trading ex-demerger. The eligible investor (holder as on 25 October, 2022) 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. 

In October 2020, the 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 entire stake of the Government of India. Incorporated in 1958 as a Government of India public enterprise, NMDC is India’s largest producer of iron ore.