The company’s revenue from operations also surged 19.7% on a year-on-year basis to Rs 4,806.57 crore for the said quarter, up from Rs 4,013.98 crore reported in the year-ago period.
Regarding the bonus share issue, the board approved a bonus issue of equity shares in the proportion of 2:1, which means for every one share investors hold in the company, they will get two additional shares.
“The Board declared issuance of bonus shares to the shareholders of the company in the ratio of 2:1, i.e. 2 (two) bonus equity shares of face value Rs 1 each fully paid up; for every 1 (One) existing equity share,” the company said in a filing.
Other details like the record date for the bonus issue will be intimated in due course.
A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.Also read: KPI Green Energy to consider bonus issue, stock split on November 14
All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.
Post the Q2 update, domestic brokerage firm Motilal Oswal maintained its buy rating on NMDC with a target price of Rs 280.
Despite weak volume in 1HFY25, the revenue growth remained healthy, led by better realization. NMDC raised iron ore prices twice in October 2024, with cumulative hikes of Rs 1,000/t for lumps and Rs 800/t for fines.
Motilal Oswal believes these price hikes will support realizations going forward.
‘India’s crude steel capacity is expected to reach 300mt by FY30-31, which will increase the iron ore requirement to 435-445mt. As NMDC holds 16% of the market share, we believe it is well placed to capitalize on the opportunities ahead,” said the domestic brokerage firm.
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