Shares of NMDC Steel locked at a 5% high at Rs 31.75 on the BSE during its first session on Monday. NMDC Steel is a demerged entity from NMDC.

The steel company’s shares opened at Rs 30.25 on the BSE before touching a low of Rs 29.05, with 7.5 million shares changing hands in the first hour of trading on both the BSE and NSE exchanges, data showed. There are more than 19 million shares of buy orders pending. The S&P BSE Sensex rose 0.12% to 61,078 at 10:14 am.

Post-demerger, shares of NMDC Steel were listed on the NSE and BSE exchanges at Rs 30.25 each on February 20, in line with expert expectations. Meanwhile, shares of its parent NMDC Limited fell 1% to Rs 120 per share.

The equity of NMDC Steel is listed and traded in Group T securities of the exchange. The stock will trade for 10 trading days in the Trade-for-Trade (T2T) segment. Every transaction must be delivered in the T2T link, and net intraday positions are not allowed.

NMDC, in its apparition 2025, had specified that its role would be that of a designer for steel plants and that it would request stockholders to commission and function the plants at an appropriate time.

Accordingly, the iron ore manufacturer had anticipated a scheme to add more importance to its stakeholders by demerging the steel corporate into a separate company and consequently inviting investors.

As per the demerger scheme, shareholders of NMDC got one equity share of NMDC Steel for each share detained. Assets of Rs 18,650 crore and liabilities of Rs 1,602 crore has similarly been demerged to NMDC Steel.

The demerger is predictable to help the parent’s balance sheet as any surplus capex now on the steel plant will be over the balance sheet of the steel plant without an alternative to the mining business, Motilal Oswal Financial Services noted.

While the board of NMDC had permitted the demerger in July 2021, the steel Ministry approved the demerger of NMDC Steel in March 2022.