Sandur Manganese approved raising up to Rs 1,000 crore via QIP

Sandur Manganese & Iron Ores Limited (SMIORE), established in 1954, is part of the Karnataka-based Sandur Group. It mines low-phosphorus manganese and iron ore in the Hosapete-Ballari region and produces ferro-alloys like silico-manganese and ferro-manganese, as well as coke at its plant near Hospet. SMIORE is the third-largest manganese ore miner in India.

The company is planning to raise up to Rs.1,000 crore through a Qualified Institutional Placement (QIP). The company’s board has approved the decision, and shares will be offered to institutional investors at a face value of Rs.10 each. The final price will be determined according to the relevant regulations, as part of the company’s efforts to manage its financial needs and growth opportunities.

Expanding with Arjas Steel

Earlier this year, Sandur Manganese also made a big announcement about acquiring 80% of Arjas Steel Pvt. Ltd. Valued at around Rs.3,000 crore, the final price of the deal will be adjusted based on standard terms. The remaining 19.12% stake is being picked up by BAG Holdings Pvt. Ltd., owned by one of Sandur’s promoters, Bahirji A. Ghorpade. The transaction is expected to wrap up within the next seven months, once it clears approval from the Competition Commission of India (CCI).

Market & Stock Update

Despite these developments, Sandur Manganese’s stock saw a dip yesterday, falling by 2.05% to close at Rs.489.30. This contrasts with a slight rise in the broader market, with the BSE Sensex up by 0.12%. However, Sandur’s stock has delivered strong results over the longer term, up over 84% over the past 12 months. Its relative strength index (RSI) of 43.62 shows the stock is fairly balanced at the moment.

Conclusion: All in all, Sandur Manganese’s plans for a Rs.1,000 crore QIP and the acquisition of a majority stake in Arjas Steel show the company is preparing for its next phase of business growth. While stock movements have been a bit mixed, these actions hint at some interesting developments for Sandur.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.