Shares of this mining company hit 10 percent upper circuit on Monday’s trading session after the board recommended the issuance of bonus equity shares in the ratio of 5:1. The shares have delivered around 60 percent returns to its shareholders in six months.
With a market capitalisation of Rs. 6,875 crores, the shares of Sandur Manganese and Iron Ores Ltd started Monday’s trading session on a higher note at Rs. 2,350 compared to its previous close of Rs. 2,313.60. The shares clocked a 10 percent upper circuit at Rs. 2,544.95, which is also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the board approved and recommended the issue of bonus equity shares in the ratio of 5:1 i.e., 5 new fully paid-up equity shares of Rs.10 each for every 1 existing fully paid-up equity share of Rs. 10 each held by the eligible shareholders as on the record date.
As of 30 September 2023, the company had free reserves worth Rs.1,957 crore, which will be utilised to issue the bonus shares. According to the BSE data, this is the company’s first-ever issue of bonus shares. The Company will credit the Bonus Shares to the eligible shareholders within 2 months from the date of the board’s approval.
Coming onto the company’s financial statements, the revenue decreased by around 50 percent from Rs. 363 crores during the June quarter to Rs. 185 crores in the September quarter. In addition, the net profit declined by 49 percent from Rs. 40 crores to Rs. 26 crores during the same timeframe.
Earlier this year, the company’s board had approved a rights issue worth Rs. 18 crore and a capex plan of Rs.900 crore to Rs.950 crore. The rights issue ratio was fixed at 2 new shares for every 1 share.
Headquartered in Karnataka, Sandur Manganese and Iron Ores Ltd was incorporated in 1954. The company is involved in the mining of low-phosphorous manganese and iron ore in the Hospet-Ballari region of Karnataka.
Written By Vaibhav Patil
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