Andhra Cements Ltd on Monday (February 26) said its promoter Sagar Cements Ltd will dilute its stake by 5% through an offer for sale (OFS).
The sale is scheduled to take place between February 27 and 28, 2024. The proposed floor price for the offering is set at ₹90 per share, according to a stock exchange filing.
Shares of Andhra Cements Ltd jumped 1,862.96% in one year.
Only non-retail investors will be allowed to place their bids on T day, i.e. February 27, 2024. While placing their bids, non-retail investors may indicate their willingness to carry forward their unallotted bids to T+1 day for allocation to them in the unsubscribed portion of the retail category.
Only retail investors will be allowed to place their bids on T+1 day, i.e. February 28, 2024. Further, those non-retail investors who have placed their bids on T day and have chosen to carry forward their unallotted bids to T+1 day will be allowed to revise their bids on T+1 day as per the OFS guidelines.
For the non-retail category, a minimum of 25% of the offer shares will be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price. For the retail category, 10% of the offer will be reserved for allocation subject to receipt of valid bids.
Anand Rathi Share & Stock Brokers Ltd is acting as the sole broker.
In January 2024, Sagar Cements was declared as the successful resolution applicant for Andhra Cements, a Jaypee Group company. Last year, Andhra Cements also received expressions of interest from Jindal Poly, Dalmia Bharat, and Khandwala Finstock Pvt Ltd. According to reports, Sagar Cements was the frontrunner to acquire Andhra Cements.
The National Company Law Tribunal had directed the initiation of insolvency proceedings against Andhra Cements in April last year. The direction came after Pridhvi Asset Reconstruction and Securitisation Company Ltd filed a petition against Andhra Cements, claiming a default.
Shares of Andhra Cements Ltd ended at ₹111.30, down by ₹3.20, or 2.79%, on the BSE.
