NewsOrders & DealsSagar Cements Divests 7.76% Stake in Andhra Cements Through Offer for Sale MechanismSagar Cements Divests 7.76% Stake in Andhra Cements Through Offer for Sale Mechanism
Sagar Cements Limited has completed the divestment of 71,48,978 equity shares (7.76%) in Andhra Cements Limited through an OFS mechanism conducted on January 09 and 12, 2026. The transaction reduced Sagar Cements' total shareholding from 90.00% to 82.24%, while maintaining its promoter status. The OFS was conducted in compliance with SEBI regulations to meet minimum public shareholding requirements, with the original offer size being up to 75,00,000 shares representing 8.14% of the total paid-up equity capital.
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Andhra Cements Limited has disclosed that its promoter, Sagar Cements Limited, has successfully completed the sale of 71,48,978 equity shares through an Offer for Sale (OFS) mechanism. The transaction, conducted on January 09 and 12, 2026, represents a significant divestment by the parent company to meet regulatory compliance requirements.
Transaction Overview
The OFS involved the sale of equity shares with a face value of ₹10.00 each, representing 7.76% of Andhra Cements' total issued and paid-up equity share capital. The transaction was structured across two days, with January 09, 2026 designated as T Day for non-retail investors only, and January 12, 2026 as T+1 Day for retail investors and non-retail investors carrying forward their unallotted bids.
| Transaction Details: | Specifications |
|---|---|
| Shares Sold: | 71,48,978 equity shares |
| Face Value: | ₹10.00 per share |
| Percentage of Capital: | 7.76% |
| Transaction Dates: | January 09 & 12, 2026 |
| Original Offer Size: | Up to 75,00,000 shares (8.14%) |
Shareholding Pattern Changes
The divestment has resulted in a substantial reduction in Sagar Cements' ownership of Andhra Cements Limited. Prior to the transaction, Sagar Cements held a dominant position in its subsidiary company.
| Shareholding Comparison: | Before Transaction | After Transaction | Change |
|---|---|---|---|
| Voting Rights Shares: | 6,10,64,043 (66.25%) | 5,39,15,065 (58.49%) | -71,48,978 (-7.76%) |
| Encumbered Shares: | 2,18,90,883 (23.75%) | 2,18,90,883 (23.75%) | No change |
| Total Holding: | 8,29,54,926 (90.00%) | 7,58,05,948 (82.24%) | -71,48,978 (-7.76%) |
Regulatory Framework and Compliance
The OFS was conducted in strict accordance with SEBI's comprehensive framework for share sales through stock exchange mechanisms. The transaction followed SEBI circular no. SEBI/HO/MRD2/PoD-2/P/CIR/P/2024/00181 dated December 30, 2024, along with revised guidelines from both BSE and NSE for OFS segment operations.
Key regulatory aspects include:
- Compliance with Regulation 29(2) of SEBI Takeover Regulations
- Adherence to minimum public shareholding requirements
- Proper disclosure mechanisms to stock exchanges
- Structured bidding process for different investor categories
Company Structure and Operations
Andhra Cements Limited operates with its registered office and works located at Durga Cement Works, Durgapuram, in Palnadu District, Andhra Pradesh. The company maintains additional manufacturing facilities including the Vizag Unit at Visakhapatnam and corporate offices in Hyderabad. With a total equity share capital of 9,21,72,140 shares valued at ₹92,17,21,400, the company remains a significant entity in the cement sector.
The transaction represents a strategic move by Sagar Cements to optimize its shareholding structure while ensuring compliance with regulatory requirements for public shareholding in listed subsidiaries.
Historical Stock Returns for Andhra Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.03% | +2.21% | -8.13% | +1.37% | -7.82% | +17.26% |
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