Shares of Sandur Manganese & Iron Ores Ltd were trading in the green and 4% higher on 26 April after the company announced signing a legally binding agreement to purchase Arjas Steel Private Limited for Rs 3,000 crore. 

In its regulatory filing, the company said that the board of directors has sanctioned a strategic business acquisition that involves acquiring 80% of Arjas Steel Private Limited’s equity share capital, with an approximate value of Rs. 3000 crores. In addition, BAG Holdings Private Limited intends to acquire roughly 19.12% of Arjas Steel Private Limited.

Additionally, this strategic acquisition opens up opportunities for integration and synergies by quickening SMIORE’s integration aspirations into value-added commodities and steel. Arjas is India’s top 5 special steel company that serves the automotive sector.  

Furthermore, Arjas possesses two establishments with a combined area of more than 950 acres: one in Andhra Pradesh and the other managed by its wholly-owned subsidiary, Arjas Modern Steel Private Limited, in Punjab. Arjas is developing both plants to increase capacity and downstream capabilities.

The company can now produce 0.46 million tonnes of manganese ore per annum (MTPA), up from 0.28 MTPA, with aspirations to rise to 0.58 MTPA. Iron ore production capacity increased from 1.60 MTPA to 3.81 MTPA, and plans are in place to increase it even further to 4.50 MTPA.

The company mines manganese and iron ores near Deogiri village in the Sandur Taluk, Bellary District, Karnataka. The company makes ferroalloys and coke at its facility in Vyasanakere, Hospet. Among its sectors are mining, coke, energy, and ferroalloys.

At 12:50 pm, the shares of Sandur Manganese shed all their early gains and were trading 0.33% lower at Rs 543 on NSE.