Sandur Manganese & Iron Ores Limited (SMIORE), a key player in the private sector mining industry, successfully concluded the acquisition of Arjas Steel, a specialty steel company known for producing auto-grade Special Bar Quality (SBQ) steel. This marks a pivotal step in SMIORE’s transformation into an integrated metals and mining entity.
Originally announced in April 2024, SMIORE amended the Share Purchase Agreement (SPA) to acquire approximately 99% of Arjas’ equity capital, up from the initially planned 80%. As a result, Arjas has now become a material subsidiary of SMIORE. The transaction has an enterprise value (EV) of around ₹3,000 crore, with an equity value of ₹2,000 crore.
Bahirji A. Ghorpade, Managing Director of SMIORE, commented, “This acquisition represents a crucial milestone in our journey from mining to metals. The integration of Arjas will propel SMIORE into becoming a prominent metals and mining powerhouse. We are committed to enhancing Arjas’ growth and solidifying its position in the specialty steel market.”
Ghorpade further emphasized that the synergies between the two companies would foster a robust business model focused on quality products, career opportunities, and value creation for all stakeholders. He added that the acquisition would unlock significant potential, particularly within key sectors such as automotive, defence, railways, energy, and exports.
SMIORE, which has been operational for over seven decades, has now expanded its scope to include three business segments: Mining (Manganese & Iron Ores), Ferroalloys, and Coke & Energy. This integration of Arjas aligns with SMIORE’s broader strategy of leveraging its assets to strengthen its position in the metals and mining industry.