Buzzing stock: This small-cap iron ore company climbed over 15% on the bourses today!
This surge came on the back of the rights issue of equity shares, for which the ex-date is today.
The shares of Sandur Manganese and Iron Ores Ltd (SMIORE), an S&P BSE SmallCap company, are trending on the bourses today. Today, the company’s share price has rallied nearly 15%. This share price movement has come on the back of rights issue of equity shares, for which the ex-date is today. As against this, the S&P BSE SmallCap index is down by 0.67 % or 177.91 points to the level of 26,561.23.
To give a brief background, a rights issue is an invitation to the existing shareholders to buy additional new shares in the company. With the help of this provision, the shareholders can buy new shares at a discount to the market price on a stated future date.
The Board of Directors of SMIORE had considered and approved the issue of 1,80,03,882 fully paid-up equity shares of face value of Rs 10 each on Rights Basis at a price of 10 per rights equity share aggregating to Rs 18,00,38,820 in the ratio of 2 Rights Equity Shares for every 1 Equity Share held as on Record Date (27 July 2022).
The issue opening date is fixed on 08 August 2022, whereas the closing date for the issue is 29 August 2022.
Today, the scrip opened at Rs 1107 and has touched a high and low of Rs 1232 and Rs 1089.15, respectively. So far 1,00,735 shares have been traded on the bourses.
Sandur Manganese & Iron Ores Ltd (SMIORE) is engaged in mining of finest low-grade, low phosphorous, manganese and iron ores, facility for production of ferroalloys and management of hydro-electric power generation. Reserves in the company’s lease area are estimated at about 40 million tonnes (Mt) of low-grade iron ore, about 8 Mt of low-grade manganese ore and nearly 100 Mt of BHQ, keeping the scope of expansion alive.
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