Small-cap stock engaged in the business of manufacturing and supplying cement and cement-related products declined by 4 percent after its promoter announced to sell up to a 5 percent equity stake in the company through an offer for sale.
With a market capitalization of Rs. 1,026 Crores, the shares of Andhra Cements Limited were trading at Rs. 111, up 0.14 percent from its previous day’s close price of Rs. 110.85.
Sagar Cements Limited the promoter of Andhra Cements Limited has proposed to dilute its stake in the company by selling up to 46 lakh equity shares representing a 5 percent equity stake in the company through an offer for sale with the floor price set at Rs. 90 per equity share.
The offer for sale will be held from February 27, 2024, to February 28, 2024, on the first day i.e., T day only Non Retailers will be allowed to bid for the equity shares of the company, and on the second day i.e., T+1 day retail investors and nonretail investors who carry forward their unallotted bids from the previous day can place bids for the equity shares of the company.
A minimum of 25 percent of the offer shares will be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price. For the retail category, 10 percent of the offer will be reserved for allocation subject to receipt of valid bids
Sagar Cements Limited, who is the sole promoter of the company holds a 95 percent stake in the company consisting of 8.75 Crore equity shares
Andhra Cements Limited is engaged in the business of manufacturing and supplying cement and cement-related products like Portland cement, portland slag, Portland pozzolana cement, and many more.
Its revenue from operations grew from no revenue in December 2022 to Rs. 98 Crores in December 2023, accompanied by a loss of Rs. 57 Crores to Rs. 21 Crores.
Written by: Bharath K.S
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