Shares of Sandur Manganese and Iron Ore inched higher up to 18 per cent to Rs 1,232 (adjusted to rights issue) on the BSE in Tuesday’s intra-day trade, after the stock was ex-right in the ratio of 2:1. In the past seven trading days, the stock has zoomed 50 per cent from level of Rs 824 on July 15, 2022. Earlier, it had hit a 52-week high of Rs 1,700.13 on April 12, 2022.
On April 10, 2022, the board had approved rights issue in the ratio of 2 rights equity shares for every 1 equity share as on record date at a price of Rs 10 per share.
The company fixed Wednesday, July 27, 2022 as the record date to determine names of shareholders in the company who were eligible to apply for equity share rights. The rights issue will open on August 8 and will close on August 29.
Currently, the company’s operations is spanned over three business segments i.e., mining (manganese & iron ores), ferroalloys, and coke and energy. The company has 2 mining leases valid up to December 31, 2033, over an area of 1,999 HA with estimated reserves of about 14 metric ton (MT) of manganese ore and 110 MT of iron ore.
That apart, the company is engaged in the production of 0.28 metric tonnes per annum (MTPA) of manganese ore and 1.60 MTPA of iron ore as per the prescribed limits. The company plans to enhance manganese ore from 0.28 to 0.46 MTPA and iron ore production from 1.60 to 4.50 MTPA, complying with the parameters prescribed by the Hon’ble Supreme Court.
“Sandur has announced a few expansion projects that are currently in the works. The company has carried out ground breaking Hot Metal and DI Pipe project after receiving necessary approvals from authorities. Furthermore, the company has announced two new projects i.e. pellet plant facility to extract more value from ore and renewable power facility to fulfill the company’s rising ferroalloys power requirements,” the management said.
On the future outlook, the management said that the company is progressing toward its long term goal of producing value-added products through an integrated setup.
“Short-term performance in line of business is influenced by commodity price fluctuations; nevertheless, the long-term focus remains on judiciously investing the cash flows generated from the company’s existing operations in integrated facilities that allow the company to capture maximum value,” the management added.