Shares of Sandur Manganese and Iron Ores Ltd. rose 2.5%, reaching a day’s high of Rs 507.85 on 17th September, after the company announced that its board of directors approved a proposal to raise up to Rs 1,000 crore through the issuance of equity shares via Qualified Institutions Placement (QIP) on Monday.

The board’s 374th meeting decided to issue equity shares with a face value of Rs 10 each in one or more tranches to raise funds.

The shares will be priced according to legal regulations and offered to qualified institutional buyers, with the issuance pending approval from shareholders and regulatory authorities.

In April, the company’s board approved buying an 80% stake in Arjas Steel Pvt. Ltd. as part of a strategic acquisition. The remaining 19.12% will be purchased by BAG Holdings Pvt. Ltd., owned by promoter Bahirji A. Ghorpade.

The financial details of the acquisition have not been disclosed, but Arjas Steel’s enterprise value is nearly Rs 3,000 crore. The cost for the 80% stake will be based on adjustments to this value at the closing date.

The firm aims to complete the acquisition within seven months, pending standard closing conditions in the Share Purchase Agreement (SPA).

The deal will need approval from the Competition Commission of India (CCI) but does not require additional regulatory approvals.

At 11:40 AM, the shares of Sandur Manganese were trading 2.31% higher at Rs 500.50 on NSE.

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