Sandur Manganese zooms 20% as board approves rights issue, capex plan

Shares of Sandur Manganese & Iron Ore hit the upper circuit of 20 per cent at Rs 4,522.80, also its 52-week high on the BSE on Monday, after the company said its board has approved Rs 18 crore rights issue and a capex plan of Rs 900 - Rs 950 crore.

The trading volumes on the counter jumped over five-fold with 86,000 equity shares changing hands on the BSE, as against an average of less than 20,000 shares that were traded in past two weeks. There were pending buys orders for 15,648 shares at 10:55 am; the exchange data shows.

"The board approved Rs 18 crore rights issue in the ratio of 2 new equity shares for every 1 equity share held by eligible shareholders as on the record date. Further the Board has constituted and authorised 'Right Issue Committee' to decide detailed terms and conditions of the Issue, including but not limiting to the deciding the payment modalities / schedule thereof, record date, timings, other terms and conditions and all other related matters etc. The promoter and promoter group of the Company will subscribe to all the unsubscribed shares in the Issue, if any," the company said.

The board has also approved capacity expansion plan with an estimated investment of Rs 900-Rs 950 crore through borrowings and internal accruals. "The projects & capacity enhancement is in line with our strategic diversification and growth plans and this capacity and product addition by the company will help to cater growing demands for the product and meets company’s internal consumption requirements as well," Sandur Manganese said in a exchange filing.

That apart, Sandur Manganese has entered into power purchase agreement and share subscription and share holding agreement with Renew Green Energy Solutions Private Limited (‘ReNew’) for supply of solar and wind power.

In the past three months, the stock of Sandur Manganese has zoomed 86 per cent as compared to 3 per cent decline in the S&P BSE Sensex. In the past one year, the counter has rallied 256 per cent, as against 19 per cent gain in the S&P BSE Sensex.