Sanghi Industries Promoters Plan 3.52% Stake Sale via OFS at Rs.90 Per Share

Sanghi Industries Ltd. announced that its promoters, Ambuja Cements Ltd. and Ravi Sanghi, will sell up to a 3.52% stake in the company through an offer-for-sale (OFS) route. Ambuja Cements Ltd., an Adani Group company, plans to offload up to 60.9 lakh shares, representing 2.36% equity. Ravi Sanghi will offer up to 30 lakh shares or 1.16% of the company’s equity.

OFS Details and Pricing

The floor price for the OFS has been set at Rs.90 per share, which is approximately a 12% discount to the current market price of Rs.102.26. The issue will open on June 26 for non-retail investors and on June 27 for retail investors, according to an exchange filing yesterday.

Regulatory Compliance and Shareholding

As of March 2024, Ravi Sanghi held a 2.1% stake in the Saurashtra-based cement maker, while Ambuja Cements owned a 60.44% stake. Following the OFS, the total promoter shareholding in Sanghi Industries is expected to decrease from 78.52% to 75%, aligning with Indian capital market norms that require at least 25% of equity to be in free float. Ambuja Cements had previously offloaded a 2% stake in March to comply with these regulations.

Background and Developments

Sanghi Industries, incorporated in 1985, operates under the brand Sanghi Cement. The company has a huge grinding and clinker capacity. Shares of Sanghi Industries recently closed 1.62% lower at Rs.102.26. In August, the Adani Group acquired Sanghi Industries in an all-cash deal, valuing the company at an enterprise value of Rs.5,000 crore. Monarch Network Capital has been appointed as the broker for the upcoming stake sale.

Previous Transactions 

In December 2023, Ambuja Cements completed its acquisition of Sanghi Industries at a revised offer price of Rs.121.90 per share as a part of a broader effort to comply with minimum public shareholding norms, ensuring a diversified and accessible shareholder base.

Conclusion: In conclusion, the upcoming OFS represents a huge step for Sanghi Industries, ensuring compliance with regulatory standards while sustaining its momentum. By reducing promoter ownership to meet public float norms, the company aims to boost its market position and inspire investor trust in the competitive cement industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.