Mumbai: NMDC Limited, India’s leading iron ore mining Public Sector Undertaking (PSU), has received board approval to incorporate a wholly-owned subsidiary (WOS) at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar. The decision was taken during the company’s 579th Board Meeting held on August 12, 2025, as per a recent stock exchange filing.
The proposed entity will be set up within the International Financial Services Centre (IFSC), subject to necessary clearances from the Ministry of Steel, Department of Investment and Public Asset Management (DIPAM), and other regulatory authorities.
read also: NMDC Reports Record Q1 Iron Ore Production; Revenue Jumps 23% Despite Flat Profit
Strategic Move to Expand Financial Capabilities
The incorporation of a new subsidiary at GIFT City signals NMDC’s intent to tap into the financial services ecosystem being developed at India’s only operational IFSC. This move could enable the PSU to optimize capital deployment, facilitate global financial transactions, and explore investment opportunities with international partners in a tax-efficient environment.
Though the company has not disclosed the scope or structure of the new subsidiary, the strategic location at GIFT City is expected to enhance NMDC’s financial agility and global connectivity.
Stock Performance: Steady Momentum, Short-Term Correction
NMDC shares have shown resilient upward momentum over the past six months, gaining 14.34%. On August 13, shares were trading 1.65% higher at ₹72.11 on the Bombay Stock Exchange (BSE), after opening at ₹72.00. The company currently commands a market capitalization of ₹63,400 crore, with a P/E ratio of 9.69, reflecting attractive valuation for long-term investors.
Despite a 4.39% correction in the past one month, analysts remain cautiously optimistic, citing strong fundamentals and dividend yield. The stock offers a dividend yield of 4.58%, which continues to attract income-seeking investors. The 52-week high stands at ₹82.83.
What’s Next?
Pending regulatory approvals, NMDC’s new subsidiary at GIFT City could become a financial catalyst for its broader strategic plans, especially in global trade, hedging, and capital management. Market participants will be watching closely for further details on the WOS’s structure and operational roadmap.
About NMDC
NMDC Limited is India’s largest producer of iron ore and operates under the Ministry of Steel. Headquartered in Hyderabad, it plays a pivotal role in meeting the raw material requirements of India’s steel industry and contributes significantly to mineral exploration and development.
read also: NMDC’s Director (Finance) Position Remains Vacant Amidst PESB’s Tough Screening
