Sagar Cements has successfully completed the divestment of a 7.76% equity stake in Andhra Cements through an Offer for Sale (OFS) mechanism. This strategic transaction marks a significant development in the company's portfolio management approach.

Transaction Details

The OFS transaction has resulted in a notable change in the ownership structure of Andhra Cements. The following table summarizes the key aspects of this divestment:

Impact on Shareholding Structure

Following the completion of this OFS, the promoter shareholding in Andhra Cements has been reduced to 82.24%. This divestment allows for increased public participation in the company's equity while ensuring that the promoter group retains substantial majority control over the operations and strategic direction of Andhra Cements.

Strategic Implications

The OFS mechanism provides an organized platform for the sale of existing shares, ensuring price discovery through market forces. This transaction demonstrates Sagar Cements' approach to optimizing its investment portfolio while maintaining strategic influence in its subsidiary operations. The reduced promoter shareholding may enhance the liquidity of Andhra Cements' shares in the secondary market, potentially benefiting existing and prospective investors.

Sagar Cements Limited has completed a significant divestment in its subsidiary Andhra Cements Limited, selling equity shares worth 7.76% of the company's total paid-up capital through stock exchange mechanisms on January 09 and 12, 2026.

Share Sale Details

The cement manufacturer sold 71,48,978 equity shares of Andhra Cements Limited with a face value of ₹10.00 each through an offer for sale mechanism. The transaction was conducted in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/P/CIR/2023/18 dated February 3, 2023.

Shareholding Changes

The divestment has resulted in a notable shift in the ownership structure of Andhra Cements Limited. Sagar Cements' promoter holding has been reduced substantially as part of the regulatory compliance initiative.

Regulatory Compliance

The share sale is part of Sagar Cements' efforts to achieve Minimum Public Shareholding requirements for Andhra Cements Limited. The company is working towards meeting the mandatory 25% public shareholding threshold within the stipulated time period.

The transaction aligns with regulatory requirements 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

Market Implications

With the current public shareholding at 17.76%, Andhra Cements Limited still needs to increase public participation by an additional 7.24% to reach the mandated 25% minimum public shareholding. The company has indicated it is in the process of achieving this requirement within the regulatory timeframe.

The systematic approach through stock exchange mechanisms ensures transparent price discovery and provides retail investors with opportunities to participate in the cement company's equity. This move reflects Sagar Cements' commitment to regulatory compliance while maintaining its controlling stake in the subsidiary.