Shares of Karnataka-based Sandur Manganese and Iron Ore (SMIORE) advanced 20 per cent to hit a 52-week high of Rs 4,522 after the company’s board approved Rs 18 crore rights issue.
According to the regulatory filing, “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 authorized the 'Right Issue Committee' to decide detailed terms and conditions of the Issue, including but not limited 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.”
Furthermore, as per the regulatory filing, the estimated investment in capital expenditure will be Rs 900 to Rs 950 crore.
The company will be entering into a power entering into Power Purchase Agreement and Share Subscription and Share Holding Agreement (‘together referred to as ‘Agreements’) with Renew Green Energy Solutions Private Limited (‘ReNew’) for the supply of solar and wind power to the Company and its associates, according to the regulatory filing.
The board has also proposed the incorporation of a wholly-owned subsidiary company under the name and style of Sandur Pellets Private Limited.
According to reports, SMIORE has zoomed 86 per cent in the past three months and has rallied 256 per cent in the past one year.
On Monday, Sensex declined 483 points to close at 58,965 and Nifty 50 index fell 109 points to close at 17,675. The metal stocks were up 0.16 per cent at 6,774.