Construction Industry News
Analysts predicted that the recently listed NMDC Steel shares, which have risen about 25% since their IPO in late February, will now follow the commissioning of their plant and the upcoming government stock sale.
The company, which separated from the state-owned NMDC last year, is now trading separately on the exchanges. In Nagarnar in Chhattisgarh, it has an integrated steel plant with a capacity of 3 million tonnes that will be operational by the end of this month.
By 2030, India, the world's second-largest steel producer, plans to produce about 300 million tons of steel annually, more than double the 120 million tons it currently produces.
Most steel producers in the country increase their production capacity using a combination of organic and inorganic routes in accordance with the government's strategy.
There will undoubtedly be companies interested in purchasing this asset, but commissioning will be crucial. Also, the capex intensity of this plant has been significant.
This plant reportedly cost NMDC between Rs 230 and Rs 200 billion.
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