Sandur Manganese & Iron Ores Limited (SANDUMA) has initiated a crucial process for shareholders holding physical shares, requesting them to furnish their demat account details for the allocation of bonus shares. This move comes in light of the company's recent Postal Ballot Notice dated 8 August 2025, which sought approval for the issuance of bonus shares.

Regulatory Compliance and Deadline

In adherence to the Securities and Exchange Board of India (SEBI) regulations, the company has emphasized that bonus shares can only be allotted in dematerialized form. This directive aligns with SEBI's Circular No. SEBI/LAD-NRO/GN/2023/130 dated 23 May 2023, which amended the provisions of Chapter XI of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Shareholders holding physical shares are required to submit the necessary documents by 15 September 2025. The required documentation includes:

1. A request letter for crediting bonus shares to the demat account
2. Form ISR-1
3. Form ISR-2
4. Self-attested copy of PAN
5. Self-attested copy of Aadhaar or any other government-issued address proof
6. Client Master List attested by the Depository Participant

Consequences of Non-Compliance

The company has clearly stated that if shareholders fail to provide the required documents by the specified deadline, their bonus shares will be credited to a Suspense Escrow Demat Account. Alternatively, these shares may be dealt with as specified by the Stock Exchanges or other relevant authorities. Shareholders who miss the deadline can later claim their bonus shares from this account through the company or its registrar, Venture Capital & Corporate Investments Private Limited (VCCIPL).

Assistance for Shareholders

To facilitate this process, Sandur Manganese & Iron Ores has made the necessary forms available for download on both the company's website ( www.sandurgroup.com/others ) and the registrar's website ( www.vccipl.com ). Shareholders seeking further clarification or information can contact the company or VCCIPL via email at secretarial@sandurgroup.com or investor.relations@vccipl.com , respectively.

Implications for Investors

This move by Sandur Manganese & Iron Ores underscores the ongoing shift towards dematerialization in the Indian stock market. It also highlights the importance for investors holding physical shares to transition to demat accounts to ensure smooth processing of corporate actions such as bonus issues.

The company's proactive communication on this matter demonstrates its commitment to keeping shareholders informed and compliant with regulatory requirements. Investors are advised to take prompt action to avoid any complications in receiving their bonus shares.

Sandur Manganese & Iron Ores Limited (SMIORE) has announced plans for a significant capital restructuring, including a bonus share issue and an increase in authorized share capital. The company's board has proposed these measures to reward existing shareholders and enhance stock liquidity.

Bonus Share Issue

SMIORE plans to issue bonus shares in a 2:1 ratio, offering two new fully paid-up equity shares for every one existing share held by eligible shareholders. This move aims to capitalize on the company's strong financial position and robust consolidated performance in recent quarters.

Authorized Capital Increase

To facilitate the bonus issue and future growth plans, SMIORE proposes to increase its authorized share capital from ₹200.00 crore to ₹600.00 crore. This would involve raising the number of authorized equity shares from 20 crore to 60 crore, each with a face value of ₹10.

Financial Implications

The bonus issue will capitalize up to ₹324.07 crore from the company's available reserves, which stood at ₹2,581.41 crore as of June 30. This capitalization represents a significant return of value to shareholders without requiring any payment from them.

Shareholder Approval Process

SMIORE is seeking shareholder approval for these proposals through a postal ballot. The remote e-voting period is scheduled from August 12 to September 10. The company has engaged the National Securities Depository Limited (NSDL) to facilitate the e-voting process.

Strategic Rationale

The board cited several reasons for these initiatives:

1. Rewarding existing shareholders
2. Encouraging retail investor participation by making shares more affordable
3. Increasing share liquidity in the market

Future Plans

In addition to the bonus issue, SMIORE's board had previously approved a proposal to raise funds through a Qualified Institutions Placement (QIP) for an aggregate amount not exceeding ₹1,000.00 crore, subject to shareholder approval.

Market Impact

These corporate actions, if approved, are expected to have a positive impact on SMIORE's stock trading volume and potentially support the share price in the long term.

Shareholders are advised to review the detailed postal ballot notice and cast their votes before the e-voting deadline. The results of the postal ballot are expected to be announced on or before September 12.