SYNOPSIS: This cement manufacturing company’s promoter plans to sell a 7.24 percent stake via OFS at Rs. 52 per share to meet public shareholding norms, reducing promoter holding to 75 percent post-divestment.
During Tuesday’s trading session, shares of a company involved in the business of manufacturing and selling cement hit a 10 percent upper circuit on BSE, after its promoter approved an offer for sale (OFS) of shares to meet the minimum public shareholding (MPS) norms at a floor price of Rs. 52 per share.
With a market cap of Rs. 485 crores, shares of Andhra Cements Limited are currently trading in the green at Rs. 52.6 on BSE, up by over 3 percent, compared to its previous closing price of Rs. 50.91. The stock has delivered negative returns of around 7 percent in one year, and has fallen by over 46 percent in the last six months.
News
According to the latest disclosure filed with the stock exchanges, Andhra Cements Limited has informed that its promoter, Sagar Cements Limited, intends to divest a portion of its equity stake in the company. This move is aimed at meeting the minimum public shareholding (MPS) requirements as prescribed under market regulations.
The proposed divestment involves the sale of up to 7.24 percent of the company’s total paid-up equity share capital, which translates to around 66.77 lakh equity shares of face value of Rs. 10 each. The floor price for the offer has been set at Rs. 52 per share.
The divestment process is scheduled to take place over a two-day window from 17th March to 18th March 2026 (between 9:15 am and 3:30 pm IST), or until the completion of the sale of all equity shares, in a single or multiple trenches, whichever is earlier.
As of 16th March 2026, the promoter holding in the company stands at 82.24 percent. Following the completion of this stake sale, the promoter shareholding is expected to reduce to around 75 percent, thereby aligning with regulatory norms.
Retail vs Non-Retail Participation: The OFS will follow a structured bidding process:
- On T day (March 17), only non-retail investors will be allowed to place bids. These investors can also opt to carry forward their unallocated bids to the T+1 day.
- On T+1 day (March 18), retail investors will be allowed to participate, along with those non-retail investors who chose to carry forward their bids. Both categories can revise their bids as per OFS guidelines.
Further, the settlement for bids placed by non-retail investors with full upfront payment on T day will be completed on T+1 day. Meanwhile, bids submitted on T+1 day, including those by retail investors, will be settled on T+2 day.
A minimum of 25 percent of the offer is reserved for mutual funds and insurance companies, subject to valid bids. Meanwhile, at least 10 percent of the offer is reserved for retail investors, ensuring wider participation.
Financials
Andhra Cements reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 67 percent, from Rs. 66 crores in Q3 FY25 to Rs. 110 crores in Q3 FY26. However, its net loss stood the same at Rs. 44 crores, over the same period.
Andhra Cements Limited is engaged in the business of manufacturing and selling cement. In FY25, the Board has approved a proposal for the modernization/expansion project to enhance the clinker manufacturing capacity from 1.65 MTPA to 2.30 MTPA and the cement grinding capacity from 1.82 MTPA to 3 MTPA and also to install a new 6 stage preheater system along with necessary modifications/replacement of the existing equipment’s to be in line with the enhanced facilities and to optimize the fuel cost at its Dachepalli unit.
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