The company made the clarification at the fag end of the trading session today, 16 July 2013. The stock had surged as much as 18.88% at the day's high of Rs 597 in afternoon trade. However, it sharply pared gains after the company's clarification.
Meanwhile, the S&P BSE Sensex fell 183.25 points, or 0.91%, to 19,851.23.
On BSE, 2.37 lakh shares were traded in the counter as against an average daily volume of 14,063 shares in the past one quarter.
The stock hit a high of Rs 597 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 525 so far during the day. The stock had hit a 52-week low of Rs 301 on 23 May 2013.
The stock had outperformed the market over the past one month till 15 July 2013, rising 25.66% compared with the Sensex's 4.47% rise. The scrip had outperformed the market in past one quarter, rising 49.64% as against Sensex's 9.13% rise.
The small-cap company has an equity capital of Rs 8.75 crore. Face value per share is Rs 10.
According to a media report, JSW Steel is in talks to purchase a significant stake in Sandur Manganese and Iron Ores in Karnataka to improve its access to iron ore and cut logistics costs.
The report added that JSW may buy the stake of the promoter in Sandur Manganese at a considerable premium to its current market price.
As on 31 March 2013, promoters held 74.28% stake in Sandur Manganese and Iron Ores.
Sandur Manganese and Iron Ores, however, clarified to the stock exchanges that although JSW Steel may be planning to acquire significant stake in Sandur, but the company's promoters have no intention of selling their substantial stake.
The same media report quoted Nazim Sheikh, joint managing director, Sandur Manganese and Iron Ores, as saying that the company is in talks with five strategic investors including JSW to build an alloy steel plant with an investment of anywhere between Rs 900 crore and Rs 1000 crore, which is partly financed by equity and debt.
In this regards, Sandur Manganese clarified that it is presently looking for strategic alliance with experienced steel makers for setting up a new special alloy steel plant, and off take of its surplus iron ore for long term supply to such strategic partners' steel plant, and some nominal cross holding in such an event may be considered. As of now it is still too premature to report anything to the stock exchanges, as everything is still in the stage of discussion and no specific idea crystalized or any sort of terms of association agreed to with anybody, the company said.
Meanwhile, in a separate announcement today, JSW Steel clarified that as a policy, it does not respond on speculative stories and market rumours. JSW Steel said that it would inform if there are any material developments in this regard.
Net profit of Sandur Manganese & Iron Ores surged 82.32% to Rs 28.97 crore on 35.96% fall in net sales to Rs 39.86 crore in Q4 March 2013 over Q4 March 2012.
Sandur Manganese & Iron Ores is engaged in the business of mining manganese and iron ore.
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