Sagar Cements Ltd announced a comprehensive offer for sale of 75 lakh equity shares representing 8.14% stake in its subsidiary Andhra Cements Limited at a floor price of ₹72 per share. The OFS is scheduled for January 9-12, 2026, with non-retail investors participating on January 9 and retail investors along with carry-forward non-retail bids on January 12. The shares carry a face value of ₹10 each and will be traded through BSE and NSE platforms from 9:15 a.m. to 3:30 p.m. The offer aims to comply with minimum public shareholding requirements under SEBI regulations, with Anand Rathi Share and Stock Brokers Limited serving as the sole broker.
The stake sale will reduce promoter shareholding from the current 90% to 81.86% of total paid-up equity share capital, while public shareholding will increase from 10% to 18.14%. The allocation system incorporates specific reservations with a minimum 25% of offer shares reserved for mutual funds and insurance companies, and 10% reserved for retail investors. Retail investors are defined as those placing bids with total value not exceeding ₹200,000 and have the option to bid at cut-off price. Settlement will occur on a trade-for-trade basis with different timelines based on investor categories, requiring 100% upfront payment from non-institutional investors.
Following the OFS announcement, shares of Sagar Cements closed 4.63% lower at ₹207.05 on the BSE, declining by ₹10.05 from the previous close of ₹217.10. According to latest market data, the stock has gained 1.61% over the last one month but remains down 3.08% over the last five days. The shares hit their 52-week high at ₹300 on September 5, 2025, while the 52-week low stood at ₹155.05 on April 1, 2025. The company's market capitalisation stood at ₹2,706.30 crore as of January 8, 2026. Andhra Cements shares closed 0.48% lower at ₹68.97, with the subsidiary's market cap at ₹635.71 crore.
The stake sale comes amid improved operating performance for the company. In Q2 FY26, Sagar Cements reported a net loss of ₹42.17 crore, narrower than the ₹55.77 crore loss recorded in the year-ago period. Consolidated revenue from operations rose 27% year-on-year to ₹601.80 crore from ₹475.12 crore in the corresponding quarter of the previous fiscal. EBITDA showed remarkable improvement, more than doubling to ₹51.28 crore compared to ₹19.33 crore in the same quarter of the previous financial year, reflecting significant margin expansion and operational efficiency gains.
Sales volumes also improved during the quarter, with overall volumes rising 17% year-on-year. Despite recent financial pressures, the company has reiterated its full-year volume guidance of 6 million tonnes. The improved operational performance reflects the company's efforts to enhance efficiency amid challenging market conditions. The OFS follows comprehensive SEBI guidelines and includes detailed provisions for modification and cancellation of orders during trading hours, with specific compliance requirements for international investors and restrictions for US persons.
