NMDC Ltd, a public sector undertaking under the union steel ministery today informed the Bombay Stock Exchange (BSE) that the company’s unsecured creditors and equity shareholders have approved the scheme of amalgamation of Sponge Iron India Ltd (SIIL) with NMDC in a meeting held on May 22, 2009.
SIIL is also a public sector undertaking under the steel ministry.
The merger was approved by the union cabinet last year.
The merger will ensure in-house supply of desired quality and quantity of iron ore (raw material) for SIIL’s sponge iron plant at Paloncha in Andhra Pradesh’s Khamman district, and will also help implement the proposed sponge iron plant expansion project at Paloncha by utilising surplus land and manpower of SIIL and financial resources available with NMDC.
At 11.40 am, NMDC’s share price at the BSE was trading at Rs 433.65, down 5 per cent from the previous close.
