NMDC positive as government initiates process to divest stake in Nagarnar Steel Plant

NMDC Share Price: Shares of state-owned NMDC Limited traded in the green on Friday, December 2, as the government set in motion the strategic sale process of Nagarnar Steel Plant.

The government on Thursday invited preliminary bids for the disinvestment of the plant. The last date for submitting expression of interest for NMDC Steel Ltd is January 27, 2023, while the last date for submitting queries is December 29, 2022. The Government of India currently holds 60.79 per cent of the total equity share capital of the company.

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“It has now been informed that pursuant to the strategic disinvestment of the Company (i) GOI shall sell such number of shares representing 50.79 per cent of the equity share capital of NMDC Steel Limited, along with transfer of management control in NMDC STEEL LIMITED,” the company said in a filing.

The stock opened more than 1 per cent higher at Rs 120.65. At 1:20 PM, the scrip traded flat in the positive bias, quoting Rs 120.30 apiece.

Zee Business panellist and market expert, Kunal Saraogi said that the stock has made a double bottom pattern on the lower levels. The stock faces resistance at Rs 120-122. He suggested viewers to book profits and wait for a breakout above Rs 122.

Shares of NMDC have yielded a positive return of 10 per cent in the past one year. YTD, it has declined 11 per cent and 15 per cent in one year.

In another related development, NMDC achieved total iron ore production of 3.61 million tonnes (MT) in November compared to 3.34 MT in the corresponding month last year. The total iron ore sales stood at 3.04 MT in the month under review.

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