Sagar Cements Promoter Pledges 19 Lakh Shares as Security for Rs.200 Crores NCDs

Sagar cements Limited's promoter group member Sreekanth Reddy Sammidi has pledged 19 lakh equity shares as security for non-convertible debentures worth Rs.200.00 crores. The Joint Managing Director made this disclosure under SEBI regulations on 26th March 2026, highlighting significant financial arrangements within the promoter group.

Pledge Details and Regulatory Compliance

The share pledge was created on 24th March 2026 in favor of Catalyst Trusteeship Limited, acting as debenture trustee for unlisted, secured, redeemable non-convertible debentures issued by R V Consulting Services Private Limited. This arrangement provides security coverage for the Rs.200.00 crores NCD issuance, with the pledged shares valued at Rs.28.50 crores on the event date.

Parameter:	Details
Pledged Shares:	19,00,000 equity shares
Percentage of Total Share Capital:	1.45%
Security Amount:	Rs.200.00 crores
Share Value on Pledge Date:	Rs.28.50 crores
Security Cover Ratio:	0.142
Trustee:	Catalyst Trusteeship Limited

Promoter Holdings and Encumbrance Structure

Sreekanth Reddy Sammidi holds 69,92,681 shares representing 5.35% of Sagar Cements' total share capital. Following this latest pledge, his total encumbered shareholding stands at 66,43,046 shares, accounting for 5.08% of the company's equity. The promoter group collectively holds 63,168,186 shares, representing 48.33% of total share capital.

Promoter Name:	Total Holding	Encumbered Shares	Encumbrance %
Sreekanth Reddy Sammidi:	69,92,681 (5.35%)	66,43,046 (5.08%)	High
Anand Reddy Sammidi:	73,04,745 (5.59%)	69,39,507 (5.31%)	High
Aruna Sammidi:	76,19,850 (5.83%)	72,38,857 (5.54%)	High
R V Consulting Services Pvt Ltd:	1,20,78,125 (9.24%)	1,20,46,000 (9.22%)	High

Multiple Encumbrance Events and Debt Instruments

This represents the fifth encumbrance event for Sreekanth Reddy Sammidi's shareholding. Previous pledges include arrangements dating back to 29th January 2024 with PI Opportunities Fund and subsequent NCD-related pledges throughout 2024-2025. The debentures carry ISIN codes INE1DUV07013 and INE1DUV07021, though they remain unlisted and unrated.

Encumbrance Event:	Date	Shares Pledged	Amount (Rs. Crores)
Event 1:	29.01.2024	66,43,046	Not Applicable
Event 2:	31.12.2024	35,00,000	170.00
Event 3:	28.01.2025	15,00,000	170.00
Event 4:	09.12.2025	Extension	30.00
Event 5:	24.03.2026	19,00,000	200.00

The disclosure indicates that encumbered shares represent 80.80% of total promoter shareholding, exceeding both the 50% promoter threshold and 20% of total share capital, triggering mandatory SEBI disclosure requirements. The arrangement includes restrictions on change of control without debenture trustee consent, which constitutes an additional encumbrance under SEBI regulations.

Purpose and Regulatory Framework

The borrowed amount through NCD issuance is designated for personal use by promoters and persons acting in concert, specifically R V Consulting Services Private Limited and Sreekanth Reddy Sammidi. The debenture trust deed dated 31st December 2024 and 9th December 2025 governs the security arrangement, with any unauthorized change of control triggering default events.

This disclosure ensures compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, maintaining transparency in promoter group financial arrangements and their impact on listed company shareholding patterns.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.80%	-9.05%	-17.34%	-38.60%	-13.11%	+13.30%

Sagar Cements Limited has informed stock exchanges about receiving a GST order from the Hyderabad GST Commissionerate imposing a significant tax liability. The cement manufacturer disclosed this development under Regulation 30 of SEBI listing requirements, highlighting the regulatory action taken against the company.

GST Order Details

The Additional Commissioner, Customs & Central Tax, Hyderabad GST Commissionerate has passed an order levying substantial tax obligations on the company. The order specifically targets corporate guarantees provided by Sagar Cements to lenders for debt facilities availed by its subsidiaries.

Parameter	Details
Issuing Authority	Additional Commissioner, Customs & Central Tax, Hyderabad GST Commissionerate
Net GST Amount	Rs 1,78,30,452
Additional Charges	Applicable interest and penalty
Legal Provision	Section 74 of the CGST/TSGST Act, 2017
Order Receipt Date	March 26, 2026

Nature of Violation

The GST authorities have imposed the tax liability on corporate guarantees provided by the company to lenders for debt availed by its subsidiaries. This action falls under Section 74 of the CGST/TSGST Act, 2017, which deals with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized.

Company's Response and Impact Assessment

Sagar Cements has outlined its response strategy and assessed the potential impact of this regulatory action. The company maintains a measured approach to addressing the GST order while ensuring compliance with disclosure requirements.

Aspect	Company Position
Planned Action	Appeal against the order before appropriate authority
Financial Impact	No material impact foreseen
Operational Impact	No material impact expected
Business Activities	No significant disruption anticipated

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both the National Stock Exchange of India and BSE Limited about this development. Company Secretary J. Raja Reddy signed the disclosure document, ensuring proper corporate governance protocols are followed. The disclosure provides comprehensive details about the GST order, including the nature of violation, monetary implications, and the company's response strategy.

Sagar Cements operates multiple manufacturing facilities across Telangana, Andhra Pradesh, and Odisha, maintaining various ISO certifications for quality, environmental, occupational health and safety, and energy management systems.