NMDC Ltd said in the regulatory filing that the board of directors has approved the Scheme of Arrangement for Demerger between NMDC Limited and NMDC Steel Limited.
The said Scheme is subject to necessary statutory and regulatory approvals including the approval of the Securities and Exchange Board of India ('SEBI'), Stock Exchanges, Ministry of Corporate Affairs, Government of India and respective shareholders and creditors, if any, of each of the companies involved in the Scheme, NMDC said in the filing.
“The Board of Directors of NMDC Limited, at its meeting held today, July 13, 2021, has approved the Scheme of Arrangement for Demerger between NMDC Limited ('Demerged Company') and NMDC Steel Limited ('Resulting Company') and their respective shareholders, pursuant to Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (hereinafter referred to as the 'Scheme'),” the company said.
NMDC Steel Limited is a wholly-owned subsidiary of NMDC Limited. NMDC Steel Limited currently does not have any business operations. It is authorized by its Memorandum of Association to carry on the business of, amongst others, manufacturing, prospecting, raising, operating, buying, selling, importing, exporting or otherwise dealing in various categories of steel and iron ore, as per the filing.
There is no cash consideration involved in the Scheme. As consideration for transfer and vesting of the Demerged Undertaking into NMDC Steel Limed, NMDC Steel Limed shall without any further application or deed, issue and allot 2930605850 equity shares of the face value of INR 10 each as consideration to each equity shareholder of NMDC Limited, whose name is recorded in the register of members of NMDC Limited as on Record date or to their respective heirs, executors, administrators or other legal representatives or successors in title, as the case may be, in the following manner: "2930605850fal(y paid-up Equity Shares of INR 101- each of NMDC Steel Limited shall be issued and allotted to the Equity Shareholders of NMDC Limited, against 2930605850 fully paid-up equity shares of JNR 11- each held by them in NMDC Limited, the company said.
NMDC Ltd ended at Rs172.05 up by Rs6.3 or 3.8% from its previous closing of Rs165.75 on the BSE.
The scrip opened at Rs166.80 and touched a high and low of Rs174.70 and Rs165.65 respectively.