Rs 5.75/Share Dividend: PSU Mining Stock To Go Ex-Dividend In 5-Days, Q3 Net Up 63%

National Mineral Development Corporation Ltd. (NMDC LTD) shares are set to go ex-dividend on February 27. The company, India's largest iron ore producer, announced on February 15 its first interim dividend for the financial year 2023-24, following an impressive third-quarter performance.

NMDC reported a significant 62.6% year-on-year (YoY) increase in net profit, amounting to Rs 1,469.7 crore for the quarter ending December 31, 2023.

In light of its robust financial performance, NMDC has fixed a record date to determine the eligibility of shareholders for the dividend. The state-run company has set the record date for February 27, 2024.

Shares of NMDC witnessed a significant surge in response to the positive news. On the Bombay Stock Exchange (BSE), the stock rose by 2.73% to Rs 238.90, while on the National Stock Exchange (NSE), it saw a similar increase of 2.75% to Rs 239. The traded volume of NMDC stocks stood at 8.89 lakh on the BSE and over 1.79 crore on the NSE, indicating heightened investor interest in the company.

The dividend announcement comes as a testament to NMDC's commitment to rewarding its shareholders for their continued support. The company disclosed in an exchange filing that the first interim dividend of Rs 5.75 per equity share of Re 1 face value has been announced by the board of directors.

In its regulatory filing, NMDC stated that the Board, during its meeting, declared a first interim dividend of Rs 5.75 (Rupees five and seventy-five paise only) per equity share of face value of Re 1 each for the financial year 2023-24.

NMDC, which owns and operates highly mechanized iron ore mines in Chhattisgarh and Karnataka, has its registered office in Hyderabad, Telangana. The company is renowned for its efficient operations and is considered one of the low-cost producers of iron ore globally.

The announcement of the dividend reflects NMDC's strong financial position and its confidence in its future prospects. The dividend payment is expected to enhance shareholder value and further bolster investor confidence in the company.

Looking ahead, NMDC remains focused on driving sustainable growth and delivering value to its stakeholders. With its strategic initiatives and relentless commitment to excellence, NMDC is poised to maintain its leadership position in the iron ore industry and continue generating significant returns for its shareholders.