NMDC share price declines 7% amid announcing ex-date for 1:2 bonus issue

NMDC shares were trading lower on the BSE on Friday, in contrast to an otherwise strong market. The NMDC share price fell by 1.6 percent during intraday trading, hovering near the day's low at 11:45 AM. In comparison, the BSE Sensex rose by 0.46 percent.

Since December 17, the NMDC share price has decreased by 7.3 percent due to the possibility of the Karnataka State government imposing higher duties on iron ore mining.

On December 23, the Karnataka Mineral Tax Bill 2024 was proposed, which aims to impose a retrospective tax on mineral land and mineral rights. This tax would be staggered over 12 years, beginning in April 2026. Reports indicate that Public Sector Undertakings (PSUs) that were granted leases before 2015 for 50 years would have to pay three times the current royalty as tax.

Additionally, PSUs that received rights before 2015 and have completed their leasing period will be required to pay 1.5 times the royalty as tax. PSUs that were granted leases after January 2015 will also face a 1.5-fold increase in the royalty tax.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : Navratna PSU RINL holds 42nd Annual General Meeting

“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.

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 existing equity share held in the company.

Read Also : WCL concludes Official Language Implementation Committee meeting