Andhra Cements Limited has announced that its promoter, Sagar Cements Limited, has sold a significant portion of equity shares to comply with minimum public shareholding (MPS) requirements. The transaction represents a major step towards meeting regulatory compliance for public shareholding norms.

Share Sale Details

Sagar Cements Limited completed the sale of 71,48,978 equity shares of Andhra Cements Limited on January 9 and 12, 2026. The shares, each having a face value of ₹10.00, represent 7.756% of the company's total issued and paid-up equity share capital.

Shareholding Pattern Changes

The share sale has resulted in a significant shift in the company's shareholding structure. The promoter's stake has been reduced substantially while public shareholding has increased correspondingly.

Regulatory Compliance Framework

The share sale was conducted through stock exchange mechanism in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/P/CIR/2023/18 dated February 3, 2023. The transaction is part of the company's efforts to achieve minimum public shareholding requirements as mandated by regulatory authorities.

The company is working towards meeting the mandatory 25% minimum public shareholding requirement within the stipulated time period. This compliance is necessary under:

• Rules 19(2)(b) and 19A of the Securities Contracts (Regulation) Rules 1957
• Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

Corporate Communication

The company formally communicated this development to both the National Stock Exchange of India Limited (NSE Symbol: ACL) and BSE Limited (BSE Scrip Code: 532141) on January 13, 2026. This notification follows an earlier intimation dated January 8, 2026, indicating the company's proactive approach to regulatory communication.

The share sale represents a structured approach to achieving regulatory compliance while maintaining transparency with stakeholders and stock exchanges. The company continues its process towards full compliance with minimum public shareholding norms within the regulatory timeframe.

Andhra Cements shares hit a 10% upper circuit, reaching ₹75.86 compared to the previous day's closing price of ₹68.97. The surge came after the company's promoter, Sagar Cements, announced a stake sale through the Offer for Sale (OFS) route to comply with SEBI's minimum public shareholding requirements.

Regulatory-Driven Stake Sale Details

The proposed stake sale is a compliance-driven process rather than a corporate decision. Currently, Sagar Cements holds 90% of Andhra Cements' equity capital, which exceeds SEBI's minimum public shareholding (MPS) requirements.

The OFS will be structured with non-retail investors participating on Day 1 and retail investors on Day 2. The promoter has committed to not purchasing any shares during the OFS window period.

Market Impact and Implications

With a market capitalization of ₹688.00 crores, the stake dilution may create short-term supply pressure. However, the increased public shareholding is expected to improve liquidity, trading depth, and institutional interest over the medium term. Since the sale is not linked to operational stress or capital requirements, it should be viewed primarily as a regulatory compliance exercise.

Financial Performance

The company demonstrated strong revenue growth in its recent quarterly results:

Company Background

Established in 1936, Andhra Cements is one of India's oldest cement-producing companies. The company has experienced multiple ownership changes, having been operated by BDCL, the Duncan Goenka Group, and the Jaypee Group. Following severe financial difficulties, production was shut down from February 2020 to March 2023, and the company entered insolvency under the IBC.

In March 2023, Sagar Cements acquired a 95% stake through an NCLT-approved resolution plan, investing ₹322.25 crores and resuming operations. The company now operates two plants at Dachepalli in Palnadu district, Andhra Pradesh, and Visakhapatnam, both with full limestone linkage.