Indian businessman Aziz Premji’s investment firm Premji Invest Opportunities Fund on Friday, March 25, agreed to invest Rs 350 crore in Hyderabad-headquartered cement firm Sagar Cements Ltd (Sagar Cements ltd) for over 10% stake. Expressed.
Sagar Cements is counted among the lowest cost cement producers in the country and currently has a production capacity of 82.5 million tonnes per annum.
In a notice sent to the stock exchanges, Sagar Cements said that its Board of Directors in its meeting held on March 25 has approved the issuance of 1.32 crore equity shares of face value of Rs 2 per share in favor of Premji Invest at Rs 265 per share. . These shares will be issued on preferential basis.
The four-decade old Sagar Cements is the company’s core South Indian state and has expanded its market presence in East Central India through a few recent acquisitions.
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Sagar Cements said it will use the Rs 350 crore proceeds from stake sale to Premji Invest to meet its organic and inorganic requirements, general corporate objectives.
Promoters’ stake in Sagar Cements will come down from 50.28 per cent to 45.2 per cent after the sale of stake to Premji Invest on a preferential basis. With a 10.10 per cent stake in Sagar Cements, Premji Invest will now also have a director on the company’s board.
In addition, Premji Invest will also assist the promoters of Sagar Cements in creating and implementing industry best governance practices by appointing suitable advisors/independent directors to promote value creation for all shareholders.
Meanwhile, the share price of Sagar Cements Limited closed at Rs 255.00, up 1.61 per cent on Friday. The shares of this company have increased by about 79% in the last one year. However, since the beginning of the year 2022, it has so far given a negative return of 5.66 percent to its investors.
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