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NMDC tanks on buzz Karanataka cancels Donimalai lease

Capital Market 

NMDC slumped 11.78% to Rs 89.85 at 15:18 IST on BSE on reports that the Karnataka government has decided to cancel the lease given to the state-run company for the Donimalai iron ore mine and to put it under auction.

In November 2018, NMDC had suspended operations at its Donimalai mine following the Karnataka government's decision to impose 80% premium on sales of iron ore.

NMDC later petitioned the high court (HC), which in July 2019, allowed the firm to resume operations at the mine.

On the BSE, 10.90 lakh shares were traded in the NMDC counter so far compared with average daily volumes of 1.86 lakh shares in the past two weeks. The stock hit a high of Rs 102 and a low of Rs 90 so far during the day.

The stock hit a 52-week high of Rs 124.3 on 14 Sep 2018. The stock hit a 52-week low of Rs 86.45 on 06 Dec 2018.

On a consolidated basis, NMDC's net profit rose 21.1% to Rs 1171.56 crore on a 34.8% rise in the net sales to Rs 3263.74 crore in Q1 June 2019 over Q1 June 2018.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, August 20 2019. 15:20 IST