OMDC zooms 63% in six days on stock-split, bonus issue buzz

The Ministry of Steel approved the stock split from face value of Rs 10 each to Re 1 each

Orissa Mineral Development Company (OMDC) has rallied over 7% at Rs 49,500, extending its past five days surge after the state-owned company made a multiple corporate announcements including stock split and bonus issue plans.

The stock has zoomed 63% from Rs 30,314 in past six trading sessions, compared to less than 2% rise in benchmark Sensex on the Bombay Stock Exchange.

In a regulatory filing, the company said that Ministry of Steel vide its letter dated July 26, 2012 informed that the proposal had been approved by the Ministry of Steel and forwarded to the company for initiating necessary action related to the issue of splitting of shares of OMDC in 1:10 ratio.

Earlier, vide its letter dated July 23, 2012 the ministry informed the company that it may look into the issue of bonus shares as per legal requirements.

“The above mentioned items may be placed at the ensuing board meeting of OMDC for consideration,” the company said.

Meanwhile, the company also announced that it has obtained environment clearance from the Union Ministry of Environment and Forests (MOEF) on July 24 for its Kolha-Roida iron ore and manganese mines in Odisha.

The government hold 50% stake in mining company, while the remaining 50% stake are with the public shareholders, of Life Insurance Corporation of India Ltd hold 15.42% stake as on June 30, 2012.