Shares of NMDC, a public sector mining company, are expected to gain attention this week.
The company’s board has approved issuing bonus shares in a 2:1 ratio, meaning shareholders will receive two additional shares for every one share they own.
The record date for this issuance has been set as 27th December. To benefit from this, investors must hold NMDC shares before this date.
This marks the first time in 16 years that NMDC is offering bonus shares. On Tuesday, the share price was recorded at ₹212.60. Meanwhile, the stock market remains closed today for Christmas celebrations.
What Are Bonus Shares?
Bonus shares are additional shares provided to existing shareholders free of cost. They are distributed in proportion to the number of shares already held by shareholders.
These shares come from the company’s retained earnings and are issued as an alternative to paying dividends.
NMDC’s Strong September Quarter Results
NMDC reported a 16.66% increase in consolidated net profit for the July-September quarter of the current fiscal year. The profit rose to ₹1,195.63 crore, compared to ₹1,024.86 crore in the same quarter of the previous year.
The company’s total income also grew by 22%, reaching ₹5,279.68 crore, up from ₹4,335.02 crore in the corresponding quarter of the previous fiscal.
As India’s largest iron ore mining unit, NMDC operates under the Ministry of Steel and supplies nearly 20% of the country’s iron ore demand, a key material for steel production.
