Athira Sethu
Kochi, 9 Jan 2026
Sagar Cements Ltd has made an announcement regarding the intention to transfer an 8.14% stake in Andhra Cements, a subsidiary, as it is necessary for meeting the minimum required public shareholding. The company is going to transfer a maximum of 75 lakh equity shares of Andhra Cements, which is 8.14% of the equity share capital.
The offer for sale (OFS) opening is scheduled on January 9, 2026, for non-retail investors. Retail investors and non-retail investors with unallotted bids can launch the offer on January 12, 2026. This sale is to be facilitated through the special window on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Prior to this news, the stock price of Sagar Cements fell by 4.6%, closing the day at ₹206.90 on the NSE.
This equity stake sale has occurred when the company is experiencing mixed readings in its business. In the September quarter, Sagar Cement experienced a net loss of ₹42.17 crore. Though lower than the ₹55.77 crore loss experienced last year, the result still indicates some challenges financially for the company. However, the good news is that the company experienced an increase in its revenues by 27%, which stood at ₹601.8 crore, up from last year. In the same context, the company experienced its EBITDA more than double in profitability to ₹51.28 crore, benefiting from improved profitability.
Sales volumes have also reported progress in the September quarter. Total sales volumes increased by 17% from last year. Although there have been some financial challenges lately, Sagar Cements has been quite optimistic about its annual sales and has set a target of 6 million tonnes.
There has been some improvement in sales volumes as well. The overall increase in sales volume has been 17% as compared to last year. Despite the current financial strain, Sagar Cement is optimistic about its overall sales for the year and is targeting 6 million tons.
The sale of the stake in Andhra Cements is one of the measures that the company is undertaking to ensure that it meets the regulatory requirements that stipulate that a minimum percentage of the company’s shares be owned by public shareholders. This is a strategy that is anticipated to help Sagar Cements meet these demands, as well as help the company’s financial position and ensure future growth.
In conclusion, Sagar Cements is divesting a portion of its holding in Andhra Cements in order to meet the shareholding requirements as well as to gear up finances for the company. Despite some financial setbacks, the company is witnessing growth in its revenues as well as sales, and is quite optimistic about its annual sales targets.
