Shares of Andhra Cements surged to a 10 percent upper circuit on October 1 after the company filed draft papers with SEBI to raise up to Rs 180 crore through a rights issue. The draft document has also been submitted to the BSE and NSE for approval.
The Rights Issue Committee approved the proposal on September 30, following an earlier notice from March 2024. This rights issue allows current shareholders to purchase additional shares in the company. Additionally, the board had previously approved raising up to Rs 250 crore through debt in March.
At 12:12 pm, Andhra Cements’ stock was trading at Rs 94.80, marking a 10 percent rise. Despite the recent surge, the stock has fallen 16 percent year-to-date, underperforming Nifty’s 18 percent gains.
The company operates two manufacturing facilities in Andhra Pradesh under the Sagar Group. In Q1 FY24, Andhra Cements reported a narrowed net loss of Rs 23.6 crore, with revenue increasing to Rs 63.3 crore from Rs 13.2 crore in the year-ago quarter.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
