NMDC Steel hits 5% upper circuit for second straight day after listing

Shares of NMDC Steel were locked in the 5% upper circuit at Rs 33.3 on Tuesday's intra-day trade on BSE after getting listed at the bourses on Monday. The shares were listed at Rs 30.25 on both exchanges.

NMDC Steel is a newly formed entity post its demerger from mining giant NMDC. The government last month had received in-principle approval from the BSE for a listing of NMDC Steel (NSL).

In October 2020, the CCEA gave its 'in-principle' approval to the demerger of the Nagarnar steel manufacturing unit from NMDC and strategic disinvestment of the resulting entity by selling the entire stake of the central government. Last year, NMDC approved the demerger of NMDC and NMDC Steel.


Following that, on December 1, 2022, the government invited bids for buying a 50.79% stake in NSL. The government's balance 10% stake would be offered to NMDC after the strategic buyer for the 50.79% stake is selected.

NMDC shareholders were allotted one share of NMDC Steel for every equity share held.

The government has recently said it received multiple preliminary bids for the privatisation of NMDC Steel. Currently, the government holds a 60.79% stake in NMDC Steel, the steel manufacturing facility of India's largest iron ore producer NMDC located in Nagarnar, Chhattisgarh.

As per current estimates, the targeted date for commissioning of the steel manufacturing plant NSL is March 31, the government said. NSL is expected to have a production capacity of 3 million tonnes per annum (MTPA). The company's market valuation stands at over Rs 9,758 crore on the BSE.