NMDC Steel shares hit upper circuit on second straight day after listing
1 min read . Updated: 21 Feb 2023, 09:43 AM IST
Premium- NMDC Steel shares hit upper circuit for the second straight day on Tuesday on the BSE
Shares of NMDC Steel hit upper circuit for the second straight day on Tuesday on the BSE, rising to ₹33 apiece in early deals, after the company's shares got listed on the stock exchanges BSE and NSE on Monday after the demerger of NMDC's steel business. The equity shares of the company was also listed on the Calcutta Stock Exchange. The company's market valuation stands at over ₹9,758 crore on the BSE.
NMDC Steel shares made market debut at ₹37.75 apiece yesterday. NMDC Steel is a newly formed entity post its demerger from mining giant NMDC Limited. The government last month had received in-principle approval from the BSE for listing of NMDC Steel Ltd (NSL).
The government last month received multiple preliminary bids for the privatisation of NMDC Steel. Currently, the government holds a 60.79% stake in NSL, which is the steel manufacturing facility of India's largest iron ore producer NMDC located in Nagarnar, Chhattisgarh.
NSL is up for privatisation with the government looking to sell 50.79% of its shareholding, along with management control. The government had on December 1, 2022, invited preliminary bids or expressions of interest (EoI) for the strategic sale and the last date for putting in bids was January 27.
The government on December 1, 2022, invited bids for buying a 50.79% stake in NSL. The balance 10 per cent stake of the government would be offered to NMDC after the strategic buyer for the 50.79 per cent stake is selected.
As per current estimates, the targeted date for commissioning of the steel manufacturing plant NSL is March 31, DIPAM said. NSL is expected to have a production capacity of 3 million tonne per annum (MTPA).