Sandur Manganese & Iron Ores Limited (SMIORE) has received in-principle approval for a significant 2:1 bonus issue, marking a notable development for its shareholders. This move will substantially increase the company's outstanding shares, potentially enhancing liquidity and accessibility for investors.

Bonus Issue Details

The company has secured approval to issue and allot 32,40,69,876 bonus equity shares, each with a face value of ₹10.00. Under this bonus issue:

• Shareholders will receive two new fully paid-up equity shares for every one existing share held.
• This 2:1 ratio effectively triples the number of shares each investor owns without diluting their overall stake in the company.

Regulatory Approvals

SMIORE has successfully obtained the necessary regulatory green lights for this corporate action:

• BSE Limited granted its approval, uploading the approval letter on its Listing Portal.
• The National Stock Exchange of India Limited (NSE) provided its approval through the NEAPS Portal and via email to the company.

Compliance and Next Steps

The bonus issue is subject to several conditions, as outlined by the NSE:

1. Obtaining all statutory and other approvals, including those from SEBI, RBI, and MCA.
2. Adhering to guidelines and regulations issued by the stock exchanges and statutory authorities.
3. Complying with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable laws.
4. Submitting necessary documents as per the further issue brochure available on the NSE website.

Implications for Investors

This bonus issue represents a significant corporate action that could impact SMIORE's stock dynamics:

• Increased number of shares in circulation may improve liquidity.
• The move might make the stock more accessible to a broader range of investors due to a potential reduction in the per-share price.
• Existing shareholders will see an increase in their total number of shares without any additional cost.

As Sandur Manganese & Iron Ores Limited moves forward with this bonus issue, investors and market watchers will be keen to observe its impact on the company's stock performance and market perception. The company's proactive communication through regulatory filings demonstrates its commitment to transparency and compliance with listing regulations.

Sandur Manganese & Iron Ores Limited (SMIORE) has taken significant steps towards enhancing its capital structure and rewarding its shareholders. The company recently announced the approval of two key resolutions through a postal ballot, marking a new chapter in its corporate journey.

Authorized Share Capital Increase

Shareholders of SMIORE have given their nod to increase the company's authorized share capital from ₹200.00 crore to ₹600.00 crore. This substantial boost triples the company's authorized capital, providing it with greater financial flexibility for future growth initiatives.

The resolution was passed with an overwhelming 99.74% of votes in favor. The new authorized share capital structure allows for the issuance of 60 crore equity shares of ₹10 each, up from the previous structure.

Bonus Share Issuance Approved

In a move that is likely to be welcomed by shareholders, SMIORE has also secured approval for the issuance of bonus shares. The company plans to issue two new fully paid-up equity shares for every one existing share held by eligible shareholders.

This resolution garnered strong support, with 99.31% of votes cast in favor. The bonus issue will be funded by capitalizing a sum not exceeding ₹324.07 crore from the company's free reserves or other permitted reserves.

Financial Implications

To facilitate the bonus issue, SMIORE will capitalize a portion of its reserves, which stood at ₹2,581.41 crore as per the latest available data. This move is expected to enhance the liquidity of the company's shares in the stock market without affecting the company's total equity value.

Voting Process

The remote e-voting process for these resolutions concluded on September 10, with T. Sathya Prasad Yadav serving as the scrutinizer.

Conclusion

These strategic decisions by Sandur Manganese & Iron Ores Limited reflect a commitment to creating value for shareholders while positioning the company for potential future growth. The increase in authorized capital provides SMIORE with the necessary headroom for any future capital-raising activities, while the bonus issue offers a tangible benefit to existing shareholders.

Both the new equity shares and bonus shares will rank equally with existing shares, ensuring fairness for all shareholders. Investors and market watchers will be keen to see how these corporate actions impact SMIORE's stock performance and its long-term growth strategy in the manganese and iron ore sectors.