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NMDC gains after incorporation of wholly owned subsidiary

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Capital Market
Last Updated : Jan 23 2015 | 2:31 PM IST

NMDC rose 1.64% to Rs 139.10 at 13:48 IST on BSE after the company said it has incorporated a wholly owned subsidiary NMDC Steel for the purpose of transferring NMDC Iron & Steel Plant into NMDC Steel.

The announcement was made during market hours today, 23 January 2015.

Meanwhile, the S&P BSE Sensex was up 200.07 points or 0.69% at 29,206.09.

On BSE, so far 1.71 lakh shares were traded in the counter as against average daily volume of 4.23 lakh shares in the past one quarter.

The stock hit a high of Rs 139.45 and a low of Rs 135.30 so far during the day. The stock had hit a 52-week high of Rs 196.15 on 6 June 2014. The stock had hit a 52-week low of Rs 123.10 on 12 March 2014.

The stock had underperformed the market over the past one month till 22 January 2015, sliding 5.95% compared with Sensex's 4.71% rise. The scrip had also underperformed the market in past one quarter, declining 14.95% as against Sensex's 8.28% rise.

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The large-cap company has equity capital of Rs 396.47 crore. Face value per share is Re 1.

NMDC said that the transferring of NMDC Iron & Steel Plant (NISP) into NMDC Steel is aimed at speeding up the progress of the construction of the project for smooth operations later. This will also facilitate focused attention on setting up of the steel plant considering the magnitude of the project and investment, NMDC said.

All the works of all major packages of NMDC's 3 MTPA integrated steel plant at Nagamar are being taken up on war footing so that the timelines for commissioning of plant can be met, NMDC said.

NMDC's net profit rose 18.8% to Rs 1566.75 crore on 25.2% growth in net sales to Rs 3102.24 crore in Q2 September 2014 over Q2 September 2013.

State-run NMDC is India's single largest iron ore producer and exporter. The Government of India (GoI) holds 80% stake in NMDC (as per the shareholding pattern as on 31 December 2014).

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First Published: Jan 23 2015 | 1:43 PM IST

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