Sagar Cements to sell 7.24% stake in Andhra Cements via OFS at ₹52 floor price

Sagar Cements Limited has announced an Offer for Sale (OFS) of 66.76 lakh shares in Andhra Cements Limited at a floor price of ₹52 per share. The two-day offer, scheduled for March 17–18, 2026, will be conducted through stock exchanges to help the company meet minimum public shareholding requirements.

Promoter to Divest Stake Through OFS

Promoter entity Sagar Cements Limited plans to sell 66,76,843 equity shares, representing 7.24% of the total paid-up equity share capital of Andhra Cements Limited.

The shares will be offered at a floor price of ₹52 per share, with the transaction executed via the Offer for Sale (OFS) mechanism on stock exchanges.

Two-Day Offer Structure

The OFS will take place over two trading sessions on March 17 and March 18, 2026, with separate participation windows for different investor categories.

Key OFS Details

Parameter Details

Offer Size 66,76,843 shares (7.24%)

Floor Price ₹52 per share

Face Value ₹10 per share

Trading Dates March 17–18, 2026

Trading Hours 9:15 AM – 3:30 PM

Designated Broker Anand Rathi Share and Stock Brokers Limited

On March 17 (T Day), participation will be limited to non-retail investors, while March 18 (T+1 Day) will allow bids from retail investors, along with carry-forward bids from institutional participants.

Allocation for Different Investor Categories

The OFS structure includes specific allocations for institutional and retail investors.

Non-Retail Investors

At least 25% of shares reserved for mutual funds and insurance companies

100% upfront payment required for non-institutional investors

Maximum 25% allocation limit per bidder, except for mutual funds and insurers

Unallotted bids may be carried forward to the next trading day

Retail Investors

Minimum 10% reservation of total offer size

Bid limit up to ₹2 lakh per investor

Option to bid at cut-off price or above the floor price

Proportionate allocation if the offer is oversubscribed

Purpose: Achieving Public Shareholding Norms

The OFS has been launched primarily to comply with minimum public shareholding requirements mandated under Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 and Regulation 38 of SEBI’s listing regulations.

This step will help Andhra Cements Limited align its shareholding structure with regulatory norms for listed companies.

Settlement and Operational Mechanism

Settlement of trades will take place through National Securities Clearing Corporation Limited, the designated clearing corporation.

Key operational aspects of the OFS include:

Trade-for-trade settlement

No oversubscription option available

No retail discount offered

Bid modification or cancellation allowed during trading hours

Securities transaction tax and other charges applicable

Promoters and promoter group members will not be permitted to participate in the offer.

The OFS provides both institutional and retail investors an opportunity to purchase shares in Andhra Cements Limited through a transparent exchange-based mechanism.