Sandur Manganese & Iron Ores Concludes Arjas Steel's Strategic Biz Acquisition

The Sandur Manganese & Iron Ores or SMIORE, a private sector mining player, has successfully completed the strategic business acquisition of Arjas Steel (Arjas), a specialty steel company focused on auto grade Special Bar Quality (SBQ) steel on 11 November 2024. With the completion of this business acquisition, Arjas has become a material subsidiary of SMIORE.

In a notable development, SMIORE has amended the original share purchase agreement (SPA) to acquire around 99 per cent equity capital of Arjas, an increase from the initially notified 80 per cent equity capital. This transaction, originally notified in April 2024, marks a significant step in SMIORE's evolution from a mining company to an integrated metals and mining company.

“This marks the closure of a very important milestone in our journey of forging a new path: from mines to metals. The addition of Arjas to SMIORE will align perfectly with our business model and catapult us to become a metals and mining powerhouse in the industry. We will propel Arjas' growth and industry positioning as a premier player in the specialty steel industry,” stated Bahirji A. Ghorpade, Managing Director, SMIORE.

Ghorpade added that the synergies between the two companies will pave the way for a robust business that will focus on delivering quality products to its customers, ample career opportunities to its employees within the group and work towards collective value creation of all its stakeholders. The Enterprise Value (EV) of the transaction has been pegged at around Rs 3,000 Crore and the equity value is around Rs 2,000 Crore.