On October 28, 2024, NMDC Limited addressed recent media speculation about a potential merger with KIOCL Limited, clarifying that no official communication has been received from the Ministry of Steel or the Department of Investment and Public Asset Management (DIPAM) concerning the merger. This clarification follows a news report in the Business Standard that suggested the merger was in consideration, pending regulatory approvals.

NMDC Limited, a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Steel, confirmed that the merger decision would require clearance from relevant government bodies, including the Ministry of Steel and DIPAM under the Ministry of Finance. However, as of the clarification date, no negotiations have occurred, nor has any formal information been conveyed to NMDC regarding a merger with KIOCL.

Key Points of Clarification:

1. No Official Notification: NMDC has categorically stated that no communication or directive has been issued by the government to initiate a merger with KIOCL.
2. Administrative Oversight: The merger decision would fall within the jurisdiction of the Ministry of Steel and DIPAM, responsible for overseeing corporate mergers and asset management within public sector undertakings.
3. No Price-Sensitive Information: As per SEBI’s Regulation 30, NMDC has confirmed there is no price-sensitive information to be disclosed, ensuring transparency for stakeholders.

This clarification emphasizes NMDC’s commitment to maintaining transparency with its investors, stakeholders, and regulatory bodies. The company has assured that any pertinent information, if received, would be disclosed in line with SEBI’s Listing Obligations and Disclosure Requirements.

The NMDC-KIOCL merger, if considered in the future, would likely align with the Indian government’s strategic initiatives for optimizing public sector enterprises and consolidating resources to enhance competitiveness in the metals and mining sector. However, NMDC’s current statement puts to rest any speculation of an immediate merger, providing stakeholders with a clear stance on the company’s position regarding this media report.

In conclusion, NMDC’s prompt response highlights its dedication to regulatory compliance and its proactive approach in addressing speculative news in the interest of protecting shareholder confidence and adhering to market disclosure requirements.