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.

Sandur Manganese & Iron Ores Limited (SMIORE) has reported strong quarterly results, with total income rising 84% year-on-year to ₹1,150.00 crore. The company's EBITDA grew 47% to ₹314.00 crore, while profit after tax increased 16% to ₹167.00 crore. However, the EBITDA margin declined to 27% compared to the previous year's levels.

The growth was primarily driven by the company's mining capacity expansions, with manganese ore capacity increased to 0.599 MTPA and iron ore to 4.45 MTPA. The integration of Arjas Steel, acquired in November 2024, also contributed to the company's performance.

Production and Sales

Production volumes remained strong, with manganese ore at 1.21 lakh tonnes and iron ore at 10.71 lakh tonnes, although sales volumes declined year-on-year for most segments. SMIORE, which holds the position of the 2nd largest manganese ore miner and 3rd largest iron ore miner in Karnataka, also commissioned a 42.9 MW renewable energy project.

Bonus Share Issue

In a significant move for shareholders, the Board of Directors has approved a bonus share issuance in the ratio of 2:1, subject to shareholder approval. This means shareholders will receive two new fully paid-up equity shares for every one existing share held.

Segment-wise Performance

The company's segment-wise performance was as follows:

Corporate Actions

• SMIORE has increased its authorized share capital from ₹200.00 crore to ₹600.00 crore to accommodate the bonus issue.
• The company has set September 10, 2025, as the record date for determining shareholder eligibility for the final dividend of ₹1.25 per equity share.
• The Board has re-appointed Bahirji Ajai Ghorpade as Managing Director for a period of three years, effective from October 1, 2025, to September 30, 2028, subject to shareholder approval.

Management Outlook

Management highlighted their focus on ramping up sales after capacity expansions and maximizing synergies from the steel acquisition. They also noted that seasonal softness is expected in steel markets due to the monsoon.

Annual General Meeting

The 71st Annual General Meeting is scheduled for September 17, 2025, to be held via video conferencing.

These strategic moves, including the bonus share issuance and leadership continuity, reflect SMIORE's commitment to shareholder value and long-term growth in the metals and mining sector.