India: Andhra Cements OFS: Promoter Sagar Cements to Sell 5% Stake, Floor Price Set at ₹90/Share
Sagar Cements Ltd, the promoter of Andhra Cements Ltd, has announced its plan to dilute a 5% stake through an Offer for Sale (OFS), with the sale scheduled for February 27 and 28, 2024.
Andhra Cements Ltd disclosed that its promoter, Sagar Cements Ltd, intends to reduce its stake by 5% via an OFS, as per a stock exchange filing. This move comes after Sagar Cements was declared the successful resolution applicant for Andhra Cements, a company previously under the Jaypee Group, in January 2024. The OFS is part of the broader strategy following the acquisition, aiming to ensure compliance with regulatory shareholding norms and possibly to provide liquidity.
The OFS process allows only non-retail investors to place their bids on the first day (February 27, 2024), with the option to carry forward unallotted bids to the next day for potential allocation in the unsubscribed portion of the retail category. Retail investors will get their chance to bid on the second day (February 28, 2024). A minimum of 25% of the offer shares is reserved for mutual funds and insurance companies in the non-retail category, with 10% of the offer reserved for retail investors, provided valid bids are received at or above the floor price.
Anand Rathi Share & Stock Brokers Ltd is serving as the sole broker for the OFS. This development follows the National Company Law Tribunal's direction last April to initiate insolvency proceedings against Andhra Cements, after a petition by Pridhvi Asset Reconstruction and Securitisation Company Ltd citing a default.
Shares of Andhra Cements Ltd experienced a significant surge, jumping 1,862.96% in one year, but ended at ₹111.30, down by ₹3.20 or 2.79%, on the BSE on the day of the announcement.
Source: CNBCTV18
