Sandur Manganese hits the roof as board OKs rights issue

Sandur Manganese & Iron Ores hit an upper circuit limit of 20% at Rs 4522.80 after the company said its board has approved a rights issue of equity shares.

The board of Sandur Manganese & Iron Ores has approved issuing upto 1,80,03,882 equity shares of face value Rs 10 each under the proposed rights issue. The entitlement ratio is set at 2:1 (two rights equity shares for each equity share held).

Post rights issue, the company's outstanding equity shares will increase to 2,70,05,823 from 90,01,941 currently. The promoter and promoter group of the company will subscribe to all the unsubscribed shares in the issue, if any.

Further, the board approved a proposal for entering into power purchase agreement and share subscription and shareholding agreement with Renew Green Energy Solutions for supply of solar and wind power to the company and its associates.

The board also approved a proposal of incorporation of a wholly owned subsidiary company under "Sandur Pellets" subject to necessary approvals.

The board, which met on Sunday, took note of the amendment to environmental clearance accorded by Ministry of Environment, Forest and Climate Change, Government of India, for the change in plant configuration and product mix for the company's plant at Hanumanahalli Village, Hosapete, Vijayanagara District, Karnataka.

The company will enhance capacity at the Karnataka plant with an estimated investment of Rs 900-950 crore. The expansion is in line with the firm's strategic diversification and growth plans. This capacity and product addition will help to cater growing demands for the product and meets company's internal consumption requirements as well, the company said.

Sandur Manganese and Iron ores is engaged in the mining of manganese and iron ores in Deogiri village of Sandur taluk, Bellary District, Karnataka. Its segments consist of mining, ferroalloys, coke and energy.

Net profit of Sandur Manganese & Iron Ores rose 486.21% to Rs 108.86 crore on 320.14% surge in net sales to Rs 491.77 crore in Q3 December 2021 over Q3 December 2020.

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