Government-owned iron ore company National Mineral Development Corporation (NMDC) on Tuesday said that the company's board of directors at its meeting held today have approved the demerger between NMDC Limited and NMDC Steel Limited.
The said scheme is subject to necessary statutory and regulatory approvals including the approval of the market regulator Securities and Exchange Board of India, stock exchanges, Ministry of Corporate Affairs, Government of India and respective shareholders and creditors, NMDC said in an exchange filing.
Shares of NMDC surged after the demerger announcement as the stock was up over 5% at ₹174 per share on the BSE on Tuesday.
''The Demerged Undertaking would be vested with NMDC Steel Limited pursuant to the demerger. The entire share capital of the NMDC Steel Limited held by the NMDC Limited would be cancel led and new equity shares of NMDC Steel Limited (in a manner as elucidated in the Scheme) would be issued to all the shareholders of NMDC Limited in the same proportion,'' it said.
NMDC limited is a government company and is engaged in the exploration of wide range of minerals including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands.
Whereas, NMDC Steel is a wholly owned subsidiary of NMDC Limited. NMDC SteeJ currently does not have any business operations. It is authorized by its Memorandum of Association to carry on the business of, amongst others, manufacturing, prospecting, raising, operating, buying, selling, importing, ex.porting or otherwise dealing invarious categories of steel and iron ore.
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NMDC board approves demerger between company and NMDC Steel - Mint
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