Sandur Manganese & Iron Ores Limited (SMIORE) has announced two significant shareholder-approved resolutions that will reshape its capital structure and reward investors. Through a postal ballot, shareholders overwhelmingly supported both the increase in authorized share capital and a 2:1 bonus share issuance, marking a milestone in the company’s journey.
Authorized Share Capital Raised to ₹600 Crore
One of the key resolutions approved is the increase in SMIORE’s authorized share capital from ₹200 crore to ₹600 crore.
- This threefold increase allows the issuance of 60 crore equity shares of ₹10 each, up from the earlier 20 crore shares.
- The resolution secured 99.74% of shareholder votes, underscoring strong investor confidence in the company’s growth trajectory.
- The additional capital base provides SMIORE with the financial flexibility to fund expansion projects, new investments, and strategic growth initiatives in the years ahead.
2:1 Bonus Issue Approved
The second major resolution passed by shareholders is the bonus issue of equity shares in the ratio of 2:1.
- Eligible shareholders will receive two fully paid-up equity shares for every one share held.
- The issue will be funded by capitalizing up to ₹324.07 crore from the company’s free reserves and other permitted reserves.
- This resolution also received near-unanimous approval, with 99.31% votes in favor.
Such a bonus issue enhances share liquidity in the secondary market and reflects SMIORE’s confidence in its financial strength.
Financial Position and Reserves
As of the latest available financials, SMIORE’s reserves stood at ₹2,581.41 crore, giving the company ample room to support the bonus issue without impacting overall equity value.
By converting a part of these reserves into share capital, the company is rewarding shareholders while maintaining a robust balance sheet.
Voting Process and Governance
The postal ballot and remote e-voting concluded on September 10, overseen by scrutinizer T. Sathya Prasad Yadav. The near-unanimous results reflect broad shareholder alignment with management’s strategic direction.
Strategic Implications
These approvals carry dual significance for SMIORE:
- Enhanced Growth Capacity – With a larger authorized capital base, SMIORE gains flexibility to raise funds for expansion, acquisitions, or other long-term growth plans.
- Shareholder Rewards – The 2:1 bonus issue directly benefits existing shareholders, improving liquidity and accessibility of the stock.
Both actions reflect a balanced approach of growth preparedness and investor value creation, positioning SMIORE strongly in the manganese and iron ore sector.
Outlook
With strong reserves, expanded capital headroom, and a shareholder-friendly bonus issuance, SMIORE is reinforcing its reputation as a financially sound and growth-oriented company. The mining and metals sector in India continues to present opportunities, and SMIORE’s strategic capital restructuring ensures it is well-positioned to capture them.
Summary
- Authorized Capital Raised: From ₹200 crore to ₹600 crore (60 crore equity shares).
- Bonus Issue: 2:1 ratio, capitalizing up to ₹324.07 crore from reserves.
- Voting Outcome: Over 99% approval for both resolutions.
- Financial Strength: Reserves of ₹2,581.41 crore support the move.
- Impact: Enhances growth flexibility, boosts shareholder value, and improves stock liquidity.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.