Shares of Andhra Cements witnessed a sharp uptick in early trade today, rising nearly 9% as investors reacted to developments around promoter stake dilution. The stock was trading at ₹54.62, up 7.12% at around 9:27 AM, after touching an intraday high of ₹55.50 compared to the previous close of ₹50.99, indicating strong buying interest in the counter.
The surge in the stock price comes after Sagar Cements, the promoter entity, announced plans to sell up to a 7.24% stake in Andhra Cements through an offer for sale (OFS). The proposed transaction is aimed at meeting the Minimum Public Shareholding (MPS) requirements prescribed for listed companies.
According to details, the OFS will be conducted over two trading days, with a portion reserved for non-retail investors on the first day followed by retail participation on the second day. The floor price for the issue has been set at a discount to the prevailing market price, a common practice to attract investor participation and ensure successful subscription.
Market participants appeared to respond positively to the development, with improved liquidity expectations and potential widening of the shareholder base driving sentiment. The stock also saw steady trading activity with buying interest outweighing selling pressure, as reflected in order book data showing higher total buy quantity compared to sell orders.
The move to reduce promoter holding is largely regulatory-driven, but it can also enhance market float and institutional interest over time. In today’s session, Andhra Cement’s price action indicated optimism around the OFS announcement, even as investors await further clarity on demand and final allocation.