Sagar Cements surges 8% as board okays issuance of shares to Premji Invest affiliate

NEW DELHI: Shares of Sagar Cements shot up 8 per cent in early trade Monday after the board of the firm approved the issuance of 1,32,07,548 equity shares to PI Opportunities Fund, a Premji Invest affiliate at an issue price of Rs 265 per share.

The transaction will fetch Rs 350 crore, utilised towards meeting organic and inorganic expansion plans.

The company’s scrip surged to a high of Rs 275 as against Rs 254.85 at previous close on the National Stock Exchange. The stock was last trading 3 per cent higher.

Premji Invest is the family office of Wipro chairman Azim Premji, specializing in private equity and venture capital investments.

According to reports, once the move is carried out, PIOF will own 10.10 per cent of Sagar Cements and will have a nominee on the board. The promoter ownership in the company, after the allotment, would stand at 45.20 per cent from 50.28 per cent earlier.

"Sagar Cements is a niche cement player with demonstrated cost leadership and a growing position in its focus markets in southern part of India. It has had a remarkable journey since inception and with expansion outside southern India through organic and inorganic plans, it is well positioned to become a pan India player,” Rajesh Ramaiah, Partner at Premji Invest, was quoted as saying in reports.

PIOF will work with the promoters and the company in setting up a best-in-class governance process, through appointment of advisors / independent directors as appropriate, in consultation with other stakeholders in an endeavour to drive value creation for all the shareholders, reports said.