Sagar Cements Ltd announced Thursday its plan to divest an 8.14% stake in its subsidiary, Andhra Cements, through an offer for sale (OFS). This strategic move is aimed at complying with minimum public shareholding requirements set by regulators. The promoter will sell up to 75 lakh equity shares of Andhra Cements. The OFS is scheduled to open for non-retail investors on January 9, 2026, while retail investors and institutional investors carrying forward unallotted bids can participate on January 12, 2026. The transaction will be conducted via a dedicated window on both the BSE and the NSE.
Following the OFS announcement, Sagar Cements' shares closed 4.6% lower at ₹206.90 on the NSE. Investors often react to stake sales, especially those involving subsidiaries, as it can signal capital reallocation or regulatory pressures. The decline reflects market sentiment around the divestment decision and its potential implications for the company's strategic direction.
The company's third-quarter results showed significant improvement with a narrower net loss of ₹42.17 crore, compared to ₹55.77 crore in the same period last year. Revenue surged 27% year-on-year to ₹601.8 crore, supported by margin expansion that more than doubled EBITDA to ₹51.28 crore. Sales volumes also registered a 17% year-on-year increase, and the company reaffirmed its full-year volume guidance of 6 million tonnes, indicating strong operational momentum despite the quarterly loss.
Sagar Cements is undertaking this stake sale to align with regulatory mandates for minimum public shareholding. This is a common practice for listed entities needing to meet market regulator norms. The divestment represents a strategic move to ensure compliance while maintaining operational control of the subsidiary. The timing of the OFS suggests the company is proactively addressing regulatory requirements ahead of any potential enforcement actions.
