NMDC has moved a step closer towards the listing of its steel business as it has finally received the approval from Ministry of Corporate Affairs (MCA) for demerging its steel plant. The market expects that in the next two months the vertical will be listed separately from the parent business.

Eye on valuation

The big question now is how to value the NMDC steel business. The company has a capital expenditure of approximately Rs 19,000 crore on the steel plant. So, if one goes by the capital work in progress levels, because the market is valuing it at those levels.

The company is in the process of complying with the requirements as envisaged in the MCA Order and the observation letters received from Bombay, Calcutta and National Stock Exchanges, NMDC said.

NMDC is in the process of demerging its three-million Greenfield steel plant it built at Nagarnar in Chhattisgarh with an investment outlay of over Rs 20,000 crore.

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