NMDC gains 2% on hike in iron ore prices; stock goes ex-dividend today

The prices of lumps & fines have been increased by Rs 250 & Rs 100 per tonne, respectively.

NMDC shares, on Monday, were trading 2 per cent higher at Rs 129.30 (adjusted to dividend) on the BSE in intra-day trade in an otherwise subdued market after the company took a price hike of iron ore with effect from March 21, 2021, wherein prices of lumps and fines have been increased by Rs 250 & Rs 100 per tonne, respectively.

After the hike, NMDC lumps or high-grade iron ore (64 per cent Fe, -10 mm) prices are currently at Rs 5,350/tonne (Rs 5,100/ tonne as on March 6, 2021) while fines or inferior grade ore (65.5 per cent Fe, 6-40 mm) prices are at Rs 4310/tonne (Rs 4210/ tonne as on March 6, 2021).

The revised prices exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said.

Iron ore is the key raw material used in steel making. Any change in its prices has a direct impact on the rates of steel.

The price hike taken by NMDC augurs well for the company as it would have a positive rub-off on the financial performance of the company, going forward, ICICI Securities said in a note.

Meanwhile, today, the stock turned ex-date for interim dividend of Rs 7.76 per share. NMDC has fixed Tuesday, the 23rd March 2021, as the record date for the purpose of payment of interim dividend.

The company's board of directors, at its meeting held on 11th March 2021, declared interim dividend at the rate of Rs 7.76 per equity share of face value of Re 1 each for the financial year 2020-21.

At 12:26 pm, the stock was trading 1.6 per cent higher at Rs 127.35, as compared to 0.94 per cent decline in the S&P BSE Sensex. A combined 9.3 million equity shares changed hands on the counter on the NSE and BSE, combined.