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The transaction has been agreed at an Enterprise Value of Rs 3,000 crore and will be subject to customary regulatory approvals and closing conditions. Through this transaction, ADV will fully divest its interest in Arjas marking another successful exit from its India portfolio. Arjas is a special steel manufacturer primarily engaged in the business of manufacturing special bar quality (SBQ) steel focused towards the auto sector in India. The company has a total employee strength of nearly 2,500 and a combined production capacity of approximately 5,00,000 MT through its integrated steel plant in Tadipatri, Andhra Pradesh and an electric arc furnace-based steel plant in Mandi Gobindgarh, Punjab. Arjas is currently undergoing a major expansion at both its facilities, which will enhance its consolidated capacity as well as expand its downstream facilities. Bahirji A. Ghorpade, managing director, SMIORE, said: ?This acquisition marks a significant milestone for SMIORE as we venture into steel and value-added products manufacturing. It not only unlocks numerous synergies but also represents a meaningful forward integration for SMIORE. The acquisition will take us another step closer to our strategic transition from a merchant miner to an integrated commodity producer. Arjas is a well-established player in the special steels segment, serving a host of critical industries that align with the government?s growing focus on infrastructure and India?s rapidly growing manufacturing economy. This acquisition, coupled with our recent mining expansion, positions SMIORE on a robust growth trajectory for the years ahead.? Sandur Manganese & Iron Ores is the flagship company of the Karnataka-based Sandur Group. It is involved in mining of low phosphorous manganese and iron ore in the Hosapete-Ballari region of Karnataka. It also manufactures ferro-alloys (silico-manganese) at its plant in Vyasankare, near Hospet. The company's consolidated net profit declined 78.10% to Rs 9.07 crore on a 60.55% fall in sales to Rs 153.02 crore in Q3 FY24 over Q3 FY23. The scrip shed 0.91% to currently trade at Rs 539.50 on the BSE. Powered by Capital Market - Live News |