NMDC Board To Consider Bonus Issue At Board On Nov. 11

NMDC Ltd.'s board will meet on Nov. 11 to consider the proposal of issuing bonus shares to its shareholders. The meeting will also review the company’s unaudited financial results for the quarter ended Sept. 30, 2024.

The proposed bonus issue, if approved, will be subject to the requisite regulatory approvals. As per the company’s notice, the trading window for dealing in the company’s securities has been closed for insiders from October 1, 2024. The trading window will remain closed until Nov. 13, 2024, which is 48 hours after the declaration of the financial results.

NMDC's bonus share proposal comes at a time when the company continues to strengthen its position in the mining and minerals sector.

Founded in 1958, National Mineral Development Corp. is one of India’s largest public-sector mining companies, primarily engaged in the extraction of iron ore. The company has mining operations in Chhattisgarh and Karnataka, where it owns some of the richest iron ore deposits in India.

As a Government of India enterprise, NMDC plays a crucial role in the country’s mining and steel industry. It is listed on both the Bombay Stock Exchange and the National Stock Exchange.

Shares of the company rose as much as 4.42% to Rs 236.50 apiece. The scrip pared gains to trade 3.36% higher at Rs 234.10 apiece as of 02:59 p.m. This compares to a 0.81% advance in the NSE Nifty 50 Index.

The stock has risen 45.99% in the last 12 months. Total traded volume so far in the day stood at 1.3 times its 30-day average. The relative strength index was at 57.

Out of 22 analysts tracking the company, 10 maintain a 'buy' rating, four recommend a 'hold,' and eight suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.7%.