The board of state-run NMDC Ltd. has recommended the issue of two free shares for every one share held by its shareholders as on the record date.

NMDC made the announcement on Monday, November 11, along with its September quarter results.

This is the first instance in the last 16 years that the company will be considering a bonus issue of shares.

The last instance of NMDC issuing bonus shares was back in 2008, when it issued 2 bonus shares for every one share held.

In the interim, NMDC has carried out buyback of its equity shares in 2016, 2019 and 2020.

NMDC is also in focus because global iron ore prices fell to the mark of ₹100 per tonne as China’s latest efforts to revive the economy on Friday left investors disappointed. That, coupled with an expansion in Chinese port stockplies has highlighted ample supplies.

Port holdings of iron ore in China have expanded for the past four weeks to the highest level since early September. On a seasonal basis, the inventories are at their biggest ever for this time of year.

The steel-making staple has retreated by more than a quarter this year, hurt by China’s property slump and signs miners are boosting supply. With mills in the top producer struggling to sell steel domestically given the weak demand, exports of the alloy surged to the highest level since 2015 last month.

Shares of NMDC are currently trading 1.3% lower on Monday at ₹232.9. The stock has corrected nearly 19% from its recent peak of ₹286.