Sandur Manganese becomes ex-date for rights issue; stock zooms 50% in 7 days

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Shares of Sandur Manganese and Iron Ore edged up as much as 18% to Rs 1,232 (rights issue adjusted) on BSE in Tuesday’s intraday trading, after the stock was ex -right in the ratio of 2:1. In the last seven trading days, the stock has climbed 50% from the 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 of Directors approved the rights issue at the ratio of 2 equity rights shares for 1 equity share on the record date at a price of Rs 10 per share.

The Company has set Wednesday, July 27, 2022 as the record date for determining the names of the Company’s shareholders who were eligible to apply for rights to the shares. The capital increase will open on August 8 and close on August 29.

Currently, the Company’s activities span three business segments, namely Mining (Manganese and Iron Ores), Ferroalloys, Coke and Power. The company has 2 mining leases valid until December 31, 2033, over an area of ​​1,999 HA with estimated reserves of approximately 14 metric tons (MT) of manganese ore and 110 MT of iron ore.

Apart from that, the company is engaged in the production of 0.28 MTPA of manganese ore and 1.60 MTPA of iron ore within prescribed limits. The company plans to increase production of manganese ore from 0.28 to 0.46 MTPA and iron ore from 1.60 to 4.50 MTPA, within parameters prescribed by the Hon’ble Supreme Court.

“Sandur has announced a few expansion projects which are currently underway. The company has completed a breakthrough Hot Metal and DI Pipe project after receiving the necessary approvals from the authorities. In addition, the company has announced two new projects, namely a pellet plant to extract more value from the ore and the renewable energy facility to meet the company’s growing energy needs for ferroalloys,” management said.

On future prospects, management said the company is making progress towards its long-term goal of producing value-added products through an integrated setup.

“The industry’s short-term performance is influenced by fluctuations in commodity prices; nevertheless, the long-term goal remains to wisely invest the cash flows generated by the company’s existing operations in integrated facilities that allow the company to extract the maximum value, “said the management added.

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