Image Source : M&A Critique
Sandur Manganese and Iron Ores Ltd (SMIORE), one of India’s oldest and most respected private mining companies, has announced two major corporate developments: the approval of a bonus share issue and the reappointment of Bahirji Ajai Ghorpade as Managing Director. These decisions, finalized at the board meeting held on August 8, 2025, reflect the company’s commitment to shareholder value and leadership continuity as it enters a new phase of strategic expansion.
The bonus issue marks the second such corporate action in less than two years, following a generous 5:1 allotment in February 2024. Meanwhile, the reappointment of Ghorpade, who has been instrumental in steering the company’s transformation into a diversified commodity producer, ensures stability and strategic clarity at the helm.
Key Highlights from the Board Meeting
- Approval of bonus shares for equity shareholders, with the ratio expected to be announced shortly
- Reappointment of Bahirji Ajai Ghorpade as Managing Director for another term
- Continued focus on sustainable mining, ferroalloy production, and energy diversification
- Strong operational performance and shareholder returns in FY25 underpin these decisions
Bonus Issue: A Strategic Gesture of Confidence
1. Background and Context
- SMIORE had previously issued bonus shares in a 5:1 ratio in February 2024
- The current bonus issue reflects continued profitability and a desire to enhance liquidity
2. Shareholder Impact
- Bonus shares increase the number of outstanding shares, making the stock more accessible
- Retail investor participation is expected to rise, improving trading volumes and market visibility
3. Financial Strength
- FY25 net profit surged 96.5 percent year-on-year to Rs 470.61 crore
- Annual revenue more than doubled to Rs 3,135.06 crore, driven by robust mining and ferroalloy sales
Leadership Continuity: Ghorpade’s Reappointment
Bahirji Ajai Ghorpade’s reappointment as MD reinforces strategic continuity:
- Under his leadership, SMIORE has expanded into coke, energy, and ferroalloy segments
- He has championed green mining practices, earning the company a Seven Star Rated Mine award from the Indian Bureau of Mines
- His tenure has seen significant operational upgrades, regulatory compliance, and stakeholder engagement
Operational Excellence and Sustainability
SMIORE continues to set benchmarks in responsible mining:
- The Kammathuru Iron Ore Mine received a Five Star Rating for sustainable development
- The company has adopted scientific mining techniques and environmental safeguards across its operations
- Investments in renewable energy and waste management are part of its long-term ESG roadmap
Market Sentiment and Stock Performance
The dual announcements have sparked investor optimism:
- Shares of SMIORE rose over 6 percent following the bonus issue news, touching Rs 476.45 intraday
- The stock has rebounded 15 percent year-to-date in 2025, despite a 23 percent decline in the previous year
- Over a five-year horizon, SMIORE has delivered multibagger returns of over 1100 percent
Strategic Outlook and Future Plans
SMIORE is poised for continued growth across its core and emerging segments:
- Expansion of manganese and iron ore production to meet rising domestic and export demand
- Scaling up ferroalloy and pig iron manufacturing capacity
- Exploring new energy ventures and downstream integration to enhance value addition
Conclusion
Sandur Manganese and Iron Ores Ltd’s latest board decisions reflect a balanced approach to shareholder rewards and leadership continuity. The bonus issue underscores financial strength and investor commitment, while Bahirji Ghorpade’s reappointment ensures strategic momentum. With a legacy of over seven decades and a forward-looking business model, SMIORE remains a cornerstone of India’s mining and metals sector.
Sources: Goodreturns, MSN Money, Moneycontrol
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