NMDC Approves Bonus Share Issue Of Two For One Held

NMDC Ltd. approved on Monday the bonus issue of equity shares in the ratio of 2:1. In a meeting, the board of directors gave its nod to the proposal along with the second-quarter financial results.

As per the plan, two fully paid-up bonus shares of face value Rs 1 each will be issued for every existing share of face value of Rs 1 to the eligible shareholders, according to an exchange filing.

NMDC will issue over 586 crore bonus shares. These will be credited on or before Jan. 10, 2025.

The company said Rs 103.4 crore will be capitalised from Capital Redemption Reserve and Rs 482.7 crore will be capitalised from General Reserve for implementing the bonus issue.

The board also approved an increase in authorised share capital of the company from Rs 400 crore to Rs 1,000 crore, subject to requisite approvals.

NMDC's net profit rose in the second quarter of financial year 2025 but missed analysts' estimates.

The iron ore miner's net profit increased 17% year-on-year to Rs 1,196 crore in the quarter ended September. This compares with the Rs 1,432-crore consensus estimate of analysts polled by Bloomberg.

The company reported a 23% increase in revenue, reaching Rs 4,919 crore, compared to Rs 4,014 crore in the previous period, though slightly below Bloomberg's estimate of Rs 5,058 crore.

On the operating side, Ebitda also saw a 16% growth, rising to Rs 1,386 crore from Rs 1,190 crore, but fell short of the estimated Rs 1,723 crore. The company's margin stood at 28.2%, down from 29.7% last year, and were lower than the anticipated 34.1%.

NMDC is India's largest producer of iron ore. The government owns 60.79% equity.

Shares of NMDC closed 1.15% lower at Rs 232.95 apiece on the BSE, compared to a flat benchmark Sensex.