NMDC gains after signing tripartite pact with MP Govt

NMDC rose 2.39% to Rs 126.25 at 9:50 IST on BSE after the company said it signed tripartite agreement with Government of Madhya Pradesh for geological and geophysical exploration for various minerals.

The announcement was made after market hours yesterday, 27 October 2016.

Meanwhile, the BSE Sensex was down 49.71 points, or 0.18%, to 27,866.19.

On BSE, so far 82,000 shares were traded in the counter, compared with average daily volume of 3.47 lakh shares in the past one quarter. The stock hit a high of Rs 126.45 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 123.70 so far during the day. The stock hit a 52-week low of Rs 75.20 on 12 February 2016. The stock had outperformed the market over the past 30 days till 27 October 2016, rising 12.24% compared with 1.33% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 23.05% as against Sensex's 0.48% decline.

The large-cap company has equity capital of Rs 316.39 crore. Face value per share is Re 1.

NMDC said that it has signed a tripartite memorandum of understanding (MOU) with Government of Madhya Pradesh and Madhya Pradesh State Mining Corporation (MPSMCL) for geological & geophysical exploration of various minerals in Madhya Pradesh. NMDC had made intentions to invest during the global investors summit held in October 2016 for exploration for different minerals in various districts of Madhya Pradesh over an area of approximately 7,200 square kilometers. As per the MOU, on successful establishment of mineral blocks through this proposed exploration, NMDC would be forming a joint venture with MPSMCL with equity 51:49 (NMDC-MPSMCL) for mining of such blocks.

Net profit of NMDC declined 29.9% to Rs 711.34 crore on 4.7% decline in net sales to Rs 1720.65 crore in Q1 June 2016 over Q1 June 2015.

NMDC is India's largest public sector iron ore producer. As per the shareholding pattern, Government of India (GoI) holds 74.943% stake in NMDC as on 14 October 2016.

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