NMDC Demerger: Stocks of National Mineral Development Corporation (NMDC) have been in news for the last couple of days as the company has fixed the record date for the demerger. The government has announced that it will demerge the steel business of the PSU. The new entity will be listed as NMDC Steel after getting all required approvals from the government. 

NMDC Demerger Record Date

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The state-owned iron-ore miner traded ex-demerger today. The demerger record date is October 28 i.e. Friday. This means investors having stocks of the company in their Demat account on the given date would be eligible for the stake in NMDC Steel. 

The state-owned company under the Ministry of Steel, which is headquartered in Hyderabad, is the country's largest iron ore producer.

NMDC Demerger Scheme 

As a part of the demerger scheme, approved by the Ministry of Corporate Affairs (MCA) recently, NMDC's assets worth Rs 18,650 crore and liabilities worth over Rs 1,600 crore will be demerged to NMDC Steel. The Ministry of Steel had in March this year approved the demerger.

NMDC Demerger Share Ratio 

NMDC shareholders will be eligible to get one share of NMDC Steel for every equity share. The face value of each share will be Rs 10. 

The scrip quoted a price of Rs 106.65 apiece at 11.50 am on NSE. The current market cap of the company, which was founded in 1958, is Rs 39,21,150.63 crore, according to the NSE website.

The company has explored into a wide range of minerals since its inception. Shares of NMDC dropped over 2 per cent on Tuesday to Rs 128.15 before marking some recovery. The scrip settled at Rs 130.95 in the previous session.