Andhra Cements Zooms 10% After Rs 180 Crore Rights Issue News
Andhra Cements has filed draft papers with SEBI to raise Rs 180 crore through a rights issue. Learn more about the company's strategic move, financial performance, and growth outlook.
Andhra Cements Ltd has officially filed draft papers with the Securities and Exchange Board of India (SEBI) this Monday, aiming to garner up to Rs 180 crore through a rights issue. Following the announcement, shares of Andhra Cements surged, hitting the 10% upper circuit at Rs 94.80 on the National Stock Exchange (NSE).
The cement maker has also submitted the necessary documents for approval to both the BSE and the NSE. These actions come after the Rights Issue Committee of the company approved the proposal in a recent meeting held on September 30, preceded by a prior notice on March 28, 2024. During the same March meeting, the board also approved a plan to raise an additional Rs 250 crore through a debt issue.
About Andhra Cements Ltd
Andhra Cements, known for operating under the esteemed "SAGAR" brand of the Sagar Group, manages two manufacturing facilities in Andhra Pradesh: the Durga Cement Works (DCW) in Dachepalli, Palnadu District, and the Visakha Cement Works (VCW) in Visakhapatnam. The primary clinker production site in Durgapuram, Dachepalli, equipped with advanced cement grinding machines, produces both Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC).
Financial Performance
For the quarter ended June 2024, the company’s net loss narrowed down to Rs 23.6 crore from a net loss of Rs 24.6 crore in the year-ago quarter. Impressively, its revenue from operations jumped to Rs 63.3 crore from Rs 13.2 crore in the year-ago quarter.
Cement companies have faced pressure from weak demand due to the monsoon and a slowdown in infrastructural activities. However, the upcoming festive season is anticipated to boost the housing sector, supporting cement demand in the coming month, although construction activities are expected to recover gradually.
Andhra Cements Stock Performance
Here's a look at the stock's performance over the past five years.
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