Shares of Andhra Cements were locked at 10 percent upper circuit the company filed the draft papers with the Securities and Exchange Board of India (SEBI) to raise up to Rs 180 crore through a rights issue.
The draft document has also been filed with the BSE and the National Stock Exchange (NSE) for their requisite approvals. The Rights Issue Committee of the company approved the proposal in a meeting on September 30, following an earlier notice on March 28, 2024.
This allows current shareholders to buy more shares in the company. Andhra Cements' board had also approved a separate proposal in March to raise up to Rs 250 crore through debt issue.
At 12:12 pm, Andhra Cements shares were trading 10 percent higher at Rs 94.80 on the National Stock Exchange (NSE). The stock has slumped around 16 percent so far this year, underperforming Nifty's returns of 18 percent.
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In the past 12 months, the counter has dipped around 1.5 percent. In comparison, Nifty rose 32 percent during this period.
Andhra Cements is a cement manufacturing company that belongs to the Sagar Group, known for its brand, "SAGAR." The company operates two manufacturing facilities: Durga Cement Works (DCW) in Dachepalli, Palnadu District, and Visakha Cement Works (VCW) in Visakhapatnam, both located in Andhra Pradesh.
The main clinker plant is located in Durgapuram, Dachepalli, about 180 km from Hyderabad. This facility is equipped with two cement grinding machines and produces both Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC).
For the quarter ended June 2024, Andhra Cements posted a net loss of Rs 23.6 crore, as compared to a net loss of Rs 24.6 crore in the year-ago period. Its revenue from operations, however, increased to Rs 63.3 crore from Rs 13.2 crore in the year-ago quarter.
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