The stock of Sagar Cements is poised to attract significant attention from investors on Friday, 9 January 2026. This follows a major corporate announcement where the company's board approved a strategic stake sale in one of its key subsidiaries.
Board Approves Stake Sale in Subsidiary
In a filing to the stock exchanges, Sagar Cements informed that its investment committee, in a meeting held on 8 January 2026, gave its nod for an Offer for Sale (OFS). The company plans to divest up to 75 lakh equity shares, each with a face value of ₹10, in its subsidiary, Andhra Cements. This transaction represents an 8.14% stake in the subsidiary firm.
The company stated, "We wish to inform you that the investment committee... inter alia, considered and approved the offer for sale of up to 75,00,000 equity shares of face value of ₹10 each." The floor price for this OFS has been set at ₹72 per share.
OFS Schedule and Investor Focus
The OFS issue will open in a phased manner. The window for non-retail investors will be active on Friday, 9 January 2026. Subsequently, the offer will open for both retail and non-retail investors starting Monday, 12 January 2026.
Consequently, shares of Andhra Cements will also be in the spotlight on Friday. The subsidiary's stock had closed at ₹68.97 on Thursday, 8 January, marking a slight decline.
Stock Performance and Market Data
On the trading session preceding the announcement, Sagar Cements shares closed at ₹207.05 on the BSE, down 4.63% from its previous close of ₹217.10. An analysis of its performance reveals a mixed picture for investors.
Long-term & Short-term Returns:
- The stock has delivered impressive returns of over 51% in the last five years.
- However, it has declined by over 10% in the last three years and is down more than 5% in the past one year.
- In the very near term, the share price has gained 1.61% in one month but is down 3.08% over the last five trading sessions.
The stock touched its 52-week high of ₹300 on 5 September 2025 and a 52-week low of ₹155.05 on 1 April 2025. The company's market capitalisation stood at ₹2,706.30 crore as of the close on 8 January 2026.
For Andhra Cements, the data shows the stock has lost 12.79% in the last year but has gained 5.10% in the last five sessions. Its 52-week high is ₹109.80 (8 September 2025) and the low is ₹48.25 (28 March 2025). The subsidiary's market cap was ₹635.71 crore.
This strategic divestment through the OFS route is a key development for market participants tracking the cement sector and small-cap stocks. Investors will be closely watching the subscription response to the offer and its impact on the share prices of both entities.
