Shares of NMDC Steel surged for a third straight day on February 22, hitting an intraday high of 5% after the company announced a demerger to go public.

The sole buyer of the stock was at Rs 34.95 on the National Stock Exchange. The stock is now up 15.5% from its listing price of Rs 30.25.

NMDC Steel, which operates as a subsidiary of parent company NMDC, made its debut on the exchange following the split on February 20. The stock was listed at Rs 30.25 on the BSE and NSE on February 20.

Under the demerger plan, NMDC shareholders hold one share of NMDC Steel for each.

NMDC chairman and managing director Sumit Deb said the company plans to commission a steel plant by April 2023 with a total capex of Rs 25,000 crore. Deb also revealed that the maximum debt of the NMDC unit is around Rs 5,000 crore, while the internal accrued profit will amount to Rs 21,000 crore.

Despite the steel production target of 1-1.5 million tonnes for FY24, Deb does not expect the company’s steel mills to break even for the next two years.

In addition, Deb added that the parent company NMDC is also preparing to buy a 10% stake in NMDC Steel, but the timing and price of the purchase have not yet been finalised.