The Sandur Manganese & Iron Ores Limited (SANDUMA) announced today its plans to acquire an additional 20 per cent stake in Arjas Steel Private Limited (ASPL), which would give it 100 per cent ownership of the specialty steel manufacturer. The company’s board approved the acquisition during its 375th meeting on November 4, 2024.
The shares of Sandur Manganese & Iron Ores Limited were trading at ₹446.05 up by ₹3.45 or 0.78 per cent on the NSE today at 12.05 pm.
The acquisition, valued at an enterprise value of approximately ₹3,000 crore, is expected to be completed by November 15, 2024. The final equity value will be determined after customary adjustments at closing. Through an amendment to the existing Share Purchase Agreement dated April 25, 2024, SANDUMA will have the right to acquire up to 99.12 per cent of ASPL’s equity share capital.
ASPL, incorporated in 1993, is among India’s top five players in the specialty steel sector, primarily serving the automotive industry. The company reported a consolidated turnover of ₹2,608 crore for FY 2023-24. The acquisition includes ASPL’s wholly owned subsidiary, Arjas Modern Steel Private Limited, which operates an electric arc integrated steel plant in Mandi Gobindgarh, Punjab.
This strategic move aligns with SANDUMA’s vision to expand its presence in the steel industry, building upon its existing business in manganese and iron ore mining, power generation, and ferroalloy manufacturing.
