Sagar Cements Limited has completed the divestment of a significant stake in Andhra Cements Limited through an Offer for Sale (OFS) mechanism, filing the mandatory regulatory disclosure under SEBI Takeover Regulations on January 13, 2026.

Transaction Details

The cement manufacturer sold 71,48,978 equity shares of ₹10.00 each in Andhra Cements Limited, representing 7.76% of the total issued and paid-up equity share capital. The transaction was executed over two trading sessions - January 09, 2026 for non-retail investors and January 12, 2026 for retail investors and non-retail investors carrying forward unallotted bids.

Shareholding Pattern Changes

Prior to the transaction, Sagar Cements held a dominant 90.00% stake in Andhra Cements Limited, comprising 6,10,64,043 voting shares (66.25%) and 2,18,90,883 encumbered shares (23.75%). Following the divestment, the company's total shareholding has decreased to 82.24%.

Regulatory Framework

The OFS was conducted in accordance with SEBI's comprehensive framework issued through circular SEBI/HO/MRD2/PoD-2/P/CIR/P/2024/00181 dated December 30, 2024. The transaction also complied with revised guidelines from both BSE Limited (notice 20240701-19 dated July 01, 2024) and National Stock Exchange of India Limited (circular 93/2024 dated July 12, 2024).

Company Structure

Andhra Cements Limited maintains its equity share capital at 9,21,72,140 shares with a face value of ₹10.00 each, totaling ₹92,17,21,400. The company's shares are listed on both BSE Limited (scrip code: 502090) and National Stock Exchange of India Limited (symbol: SAGCEM). Despite the stake reduction, Sagar Cements Limited continues to retain its promoter status in Andhra Cements Limited.

The filing was signed by J. Raja Reddy, Company Secretary and Compliance Officer of Sagar Cements Limited, ensuring compliance with Regulation 29(2) of SEBI Takeover Regulations for substantial acquisition and disposal transactions.

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.