Sandur Manganese Ltd. has set its sights on expansion with a strategic move into the steel sector. The company revealed on Thursday its plan to acquire an 80% stake in Arjas Steel Pvt. Ltd., a significant player in the Indian steel industry. The remaining 19.12% stake of Arjas Steel will be acquired by BAG Holdings Pvt. Ltd., an entity owned by one of Sandur Manganese’s promoters, Bahirji A. Ghorpade.
While the financial terms of the deal were not disclosed, Sandur Manganese indicated that the Enterprise Value of Arjas Steel stands at approximately ₹3,000 crore. The acquisition is expected to be completed within seven months, pending customary closing conditions outlined in the Share Purchase Agreement (SPA), including approval from the Competition Commission of India (CCI).
Arjas Steel, with a consolidated turnover of nearly ₹2,876 crore in the financial year 2022-2023, is renowned for its integrated specialty steel manufacturing facilities located in Tadipatri. Additionally, its subsidiary, Arjas Modern Steel Pvt. Ltd., operates an electric arc furnace-based steel plant in Mandi Gobindgarh, Punjab.
Sandur Manganese’s foray into the steel sector marks a significant shift in its business portfolio, which previously focused on mining manganese and iron ore, power generation, and manufacturing ferroalloys & coke. By integrating Arjas Steel into its operations, Sandur Manganese aims to position itself as a leading national player in the steel industry and unlock synergies across its value chain.
The announcement comes on the heels of Sandur Manganese’s recent bonus issue, signaling its commitment to growth and value creation for shareholders. Following the news, shares of Sandur Manganese closed 0.4% higher on Thursday at ₹546, reflecting investor confidence in the company’s strategic direction and expansion plans.