NMDC share price slips 7% in 6 days; trades ex-date for 1:2 bonus issue

NMDC bonus shares: The deemed date of allotment shall be Monday, December 30, 2024

NMDC bonus issue: NMDC shares were trading weak on the BSE on Friday, in an otherwise firm market. NMDC share price slipped 1.6 per cent on the BSE in the intraday trade, and was trading near the day’s low level at 11:45 AM.

 

By comparison, the BSE Sensex was up 0.46 per cent at the time of writing of this report.

 

NMDC share price has cracked 7.3 per cent on the bourses since December 17 – a day prior to reports that the Karnataka State government may impose higher duties on iron ore mining.

 

On December 23, however, the Karnataka Mineral Tax Bill 2024 proposed to impose retrospective tax on mineral land and mineral rights, with retrospective tax staggered over 12 years, starting April 2026.

 

According to reports, PSUs that were granted lease before 2015 and for 50 years, shall have to pay three-times the current royalty as tax. Further, PSUs that were granted rights before 2015 for a 50-year period and have completed the lease on mine, shall have to pay 1.5x the royalty as tax.

 

PSUs granted lease after January 2015 too will attract 1.5-fold tax on royalty paid.

 

That said, reports suggest as NMDC may witness a cost increase of around 22 per cent from the move, private miners may have to bear around 45 per cent surge in costs. This may shift volumes from private players to NMDC.

 

NMDC bonus issue

 

Meanwhile, NMDC is trading ex-date for bonus issue today. In November, the Board had agreed to issue and allot 586,12,11,700 equity shares of Rs 1 each as bonus shares in the ratio of two new equity shares for every one existing equity share held in the company.

 

“Further, the company has fixed Friday, December 27, 2024, as the ‘Record Date’ to determine the eligibility of shareholders for issuance of the said Bonus Shares. The deemed date of allotment shall be Monday, December 30, 2024,” NMDC said in a filing on December 17, 2024.

 

These Bonus Shares will be made available for trading on the next working date of allotment i.e. Tuesday, December 31, 2024, it said.