NMDC’s share price increased by over 1.5% on January 2 as the stock relies on mandate prospects from China, price hikes, and splitting steel business.

The counter is also in focus as LIC has clipped its stake in the company by 2.07% over open market transactions. The LIC holding in NMDC has abridged to 13.69% from 15.77% earlier.

At 10 am, the stock quoted Rs 124.80 per share on the NSE, higher by 1.4%. In the previous three months, it has grown by 33%. The stock has clocked advances every month since August 2022.

In October 2022, the company officially de-merged its steel plant at Nagarnar, now listing distinctly. The Finance Ministry, in December, requested initial bids for the plant, offering to sell a 50.79% stake in the company.

The last date for bid submission is January 27, 2023, as per the Expression of Interest (EOI). As per Nuvama Research, the new stock might list at worth Rs 35 per share. The demerger has enhanced investor sentiment for NMDC.

Another trigger for the stock has been the uptick in construction. NMDC reported iron ore manufacture in November at 3.61 million tonnes, selling at 3.04 MT, 8%and 5.5% higher than last year.

The upswing in demand results from the gradual resurrecting of China, the largest metal consumer. With demand rising, the company has also trekked prices. The state-run miner augmented iron ore prices by Rs 300 per ton to Rs 4,100 per ton from Rs 3,800 per ton active from November 30, 2022.

Likewise, the price of fines has been studied to Rs 2,910 per ton from Rs 2,610 per ton broadcast earlier.