BENGALURU, India, Nov. 15, 2024 /PRNewswire/ — The Sandur Manganese & Iron Ores Limited (‘SMIORE’ or ‘the Company’), one of the leading private sector mining players, has successfully completed the strategic business acquisition of Arjas Steel Private Limited (‘Arjas’), a leading speciality steel company focused on high quality auto grade Special Bar Quality (SBQ) steel on 11 November 2024. This landmark transaction, originally announced in April 2024, marks a significant step in SMIORE’s evolution from a mining company to an integrated metals and mining powerhouse.
- In a notable development, SMIORE has amended the original Share Purchase Agreement (SPA) to acquire ~99% equity capital of Arjas, an increase from the initially announced 80% equity capital, underscoring SMIORE’s commitment to fully integrate Arjas into its operations
- With the completion of this strategic business acquisition, Arjas has become a material subsidiary of SMIORE
- Enterprise Value (EV) of the transaction has been pegged at ~₹ 3,000 Crore and the equity value is ~₹ 2,000 Crore
Commenting on this milestone, Bahirji A. Ghorpade, Managing Director, SMIORE, said:
“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 & mining powerhouse in the industry. Our team has worked relentlessly to conclude the transaction within record time and within the originally anticipated timelines of 7 months from the date of announcement.
I look forward to closely work with the team at Arjas in my role as the Chairman of Arjas Steel Private Limited.
I want to reiterate that, we will propel Arjas’ growth and industry positioning as a premier player in the speciality steel industry. 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.
To the stakeholders of SMIORE, this acquisition is expected to unlock numerous synergies, representing a meaningful integration for SMIORE’s current operations. The potential at Arjas is tremendous, within its existing core competencies in the auto sector, and beyond in key sectors such as Defence, Railways, Energy and exports.”
