Rs 3,000 crore enterprise value: This multibagger company announces strategic business acquisition of Arjas Steel Pvt Ltd
This acquisition marks SMIORE's entry into the manufacturing of special steels and value-added products.
On Tuesday, the stock opened at Rs 563, with the previous closing being Rs 544.45. The 52-week high and low are Rs 613.45 and Rs 192.05, respectively as per BSE.
Recent Development:
The Sandur Manganese & Iron Ores Limited (SMIORE) and private equity firm ADV Partners have finalized a binding agreement for the strategic acquisition of Arjas Steel Private Limited (Arjas) by SMIORE. This acquisition marks SMIORE's entry into the manufacturing of special steels and value-added products. Arjas is a fully integrated special steel company and is ranked among the top 5 manufacturers of special steel products.
With an Enterprise Value of Rs 3,000 crore, Arjas operates two plants covering nearly 950 acres, including its flagship facility in Andhra Pradesh and another facility in Punjab through its subsidiary, Arjas Modern Steel Private Limited. Currently undergoing significant expansion at both sites, Arjas is poised to benefit from the growing steel and automobile markets in India, serving various industries such as energy, railways, defense, engineering, material handling, and agriculture.
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About the Company:
Sandur Manganese & Iron Ores Limited is a well-established Indian company with a long history of over six and a half decades. Since its inception in 1954, the company has grown from mining operations to producing various commodities like ferroalloys, coke, and energy. They focus on systematic, safe, and scientific mining practices, and are continuously working towards expanding and diversifying their operations further downstream.
Business Development:
The product-wise breakdown reveals that Iron Ore accounts for 22.19 per cent of the company's operations, followed by Manganese Ore at 6.7 per cent. The majority of the remaining operations, constituting 71.11 per cent, fall under the category of Others.
In terms of geographical distribution, India dominates with 100 per cent of the company's operations, while the rest of the world holds no share. This underscores the company's strong presence and focus within the Indian market, reflecting its strategic positioning and business operations.
Today, the shares of Sandur Manganese & Iron Ores Limited plunged by 3.56 per cent. The company's current market capitalization standing at 8,507.64 crore.
Furthermore, the stock has experienced significant buying activity, yielding multibagger returns of more than 138 per cent in the last one year.
Disclaimer: The article is for informational purposes only and not investment advice.