NMDC Board To Consider Bonus Issue on Nov 11, 2024

NMDC Ltd, India’s biggest name in iron ore, has something exciting coming up. On November 11, 2024, the board will gather to consider a long-awaited bonus share issue,the first one since 2008! If it goes through, this could be a big win for shareholders who’ve been holding on for years, waiting for this kind of boost. Alongside this, NMDC will also release its September quarter results, so there’s a lot for investors to look forward to.

Why This Bonus Could Be Big

For those loyal shareholders who’ve waited years, this potential bonus is a huge deal. The last time NMDC offered a bonus was 16 years ago, with a 2:1 share issue. If the board gives a go-ahead, it’s expected to be a fresh addition for both long-term holders and new investors.

Jump in Share Prices

The news has already gathered some attention. NMDC’s stock shot up by 3.6%, closing at Rs.234.70 on November 5. A similar rise was seen on the NSE, where it ended at Rs.234.98. Today the stock is trading at Rs.237.16. Over the past year, the company’s shares have climbed a hefty 47.90%, even though they’ve had a 13% dip in recent months. Now, with the potential bonus shares, interest in NMDC seems to be coming back.

Financials

NMDC’s financials this year have set a foundation for all this excitement. In Q1FY25, the company reported a net profit jump of 19% year-on-year, reaching Rs.1,969 crore. Revenue remained steady at Rs.5,414 crore, while EBITDA rose to Rs.2,725 crore from Rs.2,276 crore. With EBITDA margins rising to 51% from 42%, NMDC’s financial health looks good..

Conclusion: With a production capacity of 450.22 LT in FY24, NMDC continues to be a major force in iron ore, meeting demand at home and abroad. November 11, 2024, is shaping up to be an awaited date, investors are ready, waiting to see if NMDC’s bonus plan turns into reality, adding to the growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.