Andhra Cements shares jump 10% to hit upper circuit as promoter OFS opens at premium floor price

Andhra Cements

• Andhra Cements shares rose 10% after OFS for 8.14% stake sale opened.
• OFS floor price set at Rs 72/share, 8.9% premium to Thursday's close
• Sagar Cements' Q2 loss narrows, revenue up 27% YoY

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Shares of Andhra Cements surged 10 percent to hit the upper circuit on Friday, logging their biggest intraday gain since August 2025, as the company's OFS for promoter Sagar Cements’ 8.14 percent stake sale opened at a premium to market price.

Andhra Cements stock jumped as much as 9.99 percent to Rs 75.99 in early trade, accompanied by a sharp spike in volumes. More than 1.41 lakh shares changed hands during the session, far above the 30-day average volume of about 16,200 shares.

Sagar Cements is divesting up to 75 lakh equity shares of Andhra Cements, representing 8.14 percent of the company’s paid-up equity capital, to comply with minimum public shareholding requirements. The OFS opened on Friday for non-retail investors, while retail investors and non-retail investors carrying forward unallotted bids can participate on Monday, January 12. The sale is being conducted through a separate window on both the NSE and the BSE.

The floor price for the OFS has been set at around Rs 72 per share, implying a premium of roughly 8.9 percent to Andhra Cements’ closing price on Thursday. As of the quarter ended September 30, Sagar Cements held about 90 percent stake in Andhra Cements, with public shareholders owning the remaining 10 percent.

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Bid data available by noon on Friday showed cumulative bids of 18.7 lakh shares, translating into a subscription of about 27.7 percent for the non-retail portion. All bids were placed with 100 percent margin, according to exchange data.

The stake sale comes against a mixed operating backdrop for Sagar Cements. In the September quarter, the company reported a net loss of Rs 42.17 crore, narrower than the Rs 55.77 crore loss recorded a year earlier. Revenue rose 27 percent year-on-year to Rs 601.8 crore, while EBITDA more than doubled to Rs 51.28 crore on margin expansion. Sales volumes increased 17 percent from a year ago, and the company has reiterated its full-year volume guidance of 6 million tonnes.

Shares of Sagar Cements had ended 4.6 percent lower at Rs 206.90 on Thursday, ahead of the OFS announcement.

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