Fri Nov 15 11:24:32 IST 2024: ## NMDC Announces 2:1 Bonus Share Issue After 16 Years, Stock Dips

**New Delhi:** State-owned mining giant NMDC Ltd has announced a bonus share issue in a 2:1 ratio, marking its first such move in 16 years. The company’s board of directors approved the proposal alongside the announcement of its second-quarter financial results.

This translates to eligible shareholders receiving two NMDC shares for every one share they currently hold. NMDC will issue over 586 crore bonus shares, which will be credited on or before January 10, 2025. The last time the company issued bonus shares was in 2008 when it offered two bonus shares for every one share held.

However, despite this positive development, NMDC’s stock closed at ₹233.50 on Monday, marking a dip from its recent high of ₹286. While the stock has seen a 2% rise in the past five days, it has witnessed a decline of 9% in the last six months. Despite the recent dip, the company’s stock has climbed 11% this year and 34% year-on-year. Over a five-year period, NMDC’s share price has surged 135%.

NMDC declared its earnings for the July-September quarter on Monday, revealing a nearly 17% increase in net profit to ₹1,195.63 crore compared to ₹1,024.86 crore in the same period last year. The company also reported a 22.54% rise in revenue from operations to ₹4,918.91 crore in Q2 FY24, up from ₹4,013.98 crore in the corresponding period last year.

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