Govt approves June 30 as appointed date for NMDC, SIIL merger
State-run National Mineral Development Corporation said the government has approved June 30, 2008, as the appointed date for the merger of Sponge Iron India Ltd (SIIL) with itself.
By PTI |
MUMBAI: State-run National Mineral Development Corporation on Tuesday said the government has approved June 30, 2008, as the appointed date for the merger of Sponge Iron India Ltd (SIIL) with itself.
In June, the government had approved the proposal of the merger of the two public sector enterprises under the Ministry of Steel.
NMDC in a filing to the Bombay Stock Exchange said the government has conveyed its approval for "Appointed Date as June 30, 2008" for the merger of the Hyderabad-based company with itself through acquisition of shares of SIIL by NMDC.
The merger would ensure in-house supply of desired quality and quantity of iron ore to SIILs sponge iron plant at Paloncha in Khamman district of Andhra Pradesh.
Besides, the merger would also pave the way for implementation of the proposed sponge iron plant expansion at Paloncha by utilising surplus land and manpower of SIIL and financial resources available with NMDC.
SIIL, which has an installed capacity to manufacture 60,000 tons of sponge iron per annum, expects that its problem of raw material shortage to be solved after the merger becomes effective.
NMDC has a market capitalisation of about Rs 1.21 lakh crore, making it the fifth most valued firm in the country.
Shares of NMDC closed at Rs 307.10, down 1.92 per cent on the BSE.
In June, the government had approved the proposal of the merger of the two public sector enterprises under the Ministry of Steel.
NMDC in a filing to the Bombay Stock Exchange said the government has conveyed its approval for "Appointed Date as June 30, 2008" for the merger of the Hyderabad-based company with itself through acquisition of shares of SIIL by NMDC.
The merger would ensure in-house supply of desired quality and quantity of iron ore to SIILs sponge iron plant at Paloncha in Khamman district of Andhra Pradesh.
Besides, the merger would also pave the way for implementation of the proposed sponge iron plant expansion at Paloncha by utilising surplus land and manpower of SIIL and financial resources available with NMDC.
SIIL, which has an installed capacity to manufacture 60,000 tons of sponge iron per annum, expects that its problem of raw material shortage to be solved after the merger becomes effective.
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NMDC has a market capitalisation of about Rs 1.21 lakh crore, making it the fifth most valued firm in the country.
Shares of NMDC closed at Rs 307.10, down 1.92 per cent on the BSE.
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