NMDC Steel Plant Demerger Boost Investors Mood
NMDC has invested Rs1,800 crore in the steel plant and MOFSL expects a market valuation at 25% of the book value--Rs4,500 crore--which is about Rs16 apiece as the board of directors approved the "scheme of arrangement of demerger" between NMDC and NMDC Steel. NMDC is setting up a 3 MTPA integrated steel plant at Nagamar, Chhattisgarh. The plan was made keeping in mind the company's access to iron ore reserves. The company had forecast project commissioning by end 2021. It had also said it will only develop the steel plant and would invite investors to commission and operate the unit at a suitable time. The demerger is also positive as it limits the liability of NMDC investors of any further investments and/or any delay in commissioning of the steel plant. NMDC’s prospects, however, remain sound given strong demand for iron ore and robust realisations.
Tags : ALLIED NMDC Investors Boost steel plant Demerger Mood