Bonus Share Of Sandur Manganese

Sandur Manganese & Iron Ores Limited, a prominent player in India’s mining and metals sector, has recently announced a significant corporate action that has garnered attention from investors and market analysts alike. The company has declared a bonus share issue, offering two new fully paid-up equity shares for every one existing share held, in a 21 ratio. This move aims to reward existing shareholders and enhance the liquidity of the company’s stock in the market.

Details of the Bonus Share Issue

The board of directors of Sandur Manganese & Iron Ores Limited approved the bonus share issue on August 8, 2025. The key details of the announcement are as follows

• Bonus Ratio2 new equity shares for every 1 existing share held (21 ratio).
• Face Value₹10 per share.
• Total Number of Shares IssuedApproximately 32,406,987 new shares.
• Total Value of Bonus Shares₹324.07 crore.
• Ex-Bonus DateFebruary 2, 2024.
• Record DateTo be announced.
• Credit DateOn or before October 7, 2025.

This bonus issue is subject to shareholder approval and regulatory clearances. Upon approval, eligible shareholders will receive the bonus shares credited to their demat accounts by the specified date.

Financial Performance Leading to the Bonus Issue

The decision to issue bonus shares comes on the back of a robust financial performance by Sandur Manganese & Iron Ores Limited. For the first quarter of the financial year 2025-26 (Q1FY26), the company reported consolidated revenue from operations of ₹1,135.38 crore, marking a significant increase from ₹601.61 crore in the same period the previous year. Net profit surged to ₹167.09 crore, up from ₹144.49 crore in Q1FY25. Earnings per share rose to ₹10.28 from ₹8.92, reflecting the company’s strong profitability and operational efficiency.

The growth was driven largely by the inclusion of revenue from the steel segment following the acquisition of Arjas Steel. Segment-wise, the steel division contributed ₹724.94 crore, while mining generated ₹370.42 crore. The ferroalloys and coke & energy segments contributed ₹43.45 crore and ₹38.35 crore, respectively. This diversified revenue base underscores the company’s strategic expansion and its ability to capitalize on various market opportunities.

Strategic Implications of the Bonus Share Issue

The issuance of bonus shares serves multiple strategic purposes for Sandur Manganese & Iron Ores Limited

• Enhancing LiquidityBy increasing the number of shares in circulation, the company aims to improve the liquidity of its stock, making it more accessible to a broader range of investors.
• Rewarding ShareholdersThe bonus issue acts as a reward to existing shareholders, reflecting the company’s commitment to sharing its success with those who have supported it.
• Strengthening Market PerceptionA bonus issue can signal to the market that the company is confident in its future prospects and has a strong financial position.
• Aligning with Growth TrajectoryThe move aligns with the company’s growth trajectory, as evidenced by its expanding revenue streams and profitability.

Investor Considerations

For investors holding shares in Sandur Manganese & Iron Ores Limited, the bonus share issue presents an opportunity to increase their holdings without additional investment. However, it is essential to consider the following

• Ex-Bonus DateInvestors must hold shares before the ex-bonus date to be eligible for the bonus issue. Shares purchased on or after the ex-bonus date will not carry the entitlement to the bonus shares.
• Record DateThe record date will determine the list of shareholders eligible to receive the bonus shares. It is crucial to ensure that shares are held in demat form and are credited to the account before this date.
• Market DynamicsWhile bonus issues can lead to increased liquidity, they may also affect the stock’s price due to the dilution effect. Investors should monitor market trends and stock performance closely.
• Dividend ConsiderationsThe company has also declared a final dividend of ₹1.25 per share for the financial year ended March 31, 2025, subject to shareholder approval. The record date for dividend eligibility is September 10, 2025, with the Annual General Meeting scheduled for September 17, 2025.

The bonus share issue by Sandur Manganese & Iron Ores Limited reflects the company’s strong financial performance and its commitment to rewarding shareholders. While the move aims to enhance liquidity and shareholder value, investors should remain informed about key dates and market dynamics to make well-informed decisions. As the company continues to expand its operations and diversify its revenue streams, the bonus issue serves as a testament to its growth and strategic direction.