Sandur Manganese up 5%

Sandur Manganese is buzzing today morning; from its close of Rs.544.45, it opened at Rs.563, up 3.5% and rose to an intraday high at Rs.570, up almost 5%, close it its UC of the day at Rs.571.65.

The reason? The company announced today morning that along with PE firm, ADV Partners, (SMIORE) it acquired Arjas Steel.

The transaction has been agreed at an Enterprise Value of Rs.3,000 crore and will be subject to customary regulatory approvals and closing conditions.

Through this transaction, ADV will fully divest its interest in Arjas marking another successful exit from its India portfolio. This strategic business acquisition accelerates SMIORE’s forward integration plans into steel & value-add products, and unlocks potential for numerous synergies and integration.

Arjas is among the top 5 special steel manufacturers in India supplying to automobiles sector, operates 2 plants spread across nearly 950 acres, its flagship manufacturing facility in Andhra Pradesh and another facility in Punjab through its wholly-owned subsidiary Arjas Modern Steel Private Limited. Arjas is currently undergoing a major expansion at both its facilities, which will enhance its consolidated capacity as well as expand its downstream facilities.

For Sandur, this acquisition means a venture into steel and value-added products manufacturing, unlocking synergies and forward integration, taking it closer to its strategic transition from a merchant miner to an integrated commodity producer.