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News about Gujarat Mineral Development Corporation Limited

May 4th, 2007

NSE Press Release

The media had reports that Gujarat Mineral Development Corporation Limited may go in for a stock split. Further, the government may hive off a part of its stake in the company.

 

The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.

 

Gujarat Mineral Development Corporation Limited. has vide its letter inter-alia stated, “Partial disinvestment of State PSU’s including GMDC is in the agenda of the State Government, which holds 74% equity in the company now. When last discussed (September 06), it was decided to defer the disinvestment till such time as the financial performance of the company becomes more robust. We have no formal communication from the Government of Gujarat that the matter is reviewed or a firm decision taken in this regard. Further, the Board of Directors of GMDC in its meeting held on 30-4-2007, has resolved to split the shares of the company in the ratio of 1:5 after necessary approvals. Furthermore, GMDC has executed an MOU with Reliance Industries Ltd. to set up a joint venture (51% RIL - 49% GMDC) to undertake lignite / coal gasification projects.”

Entry Filed under: Equity Markets, NSE