Sagar Cements surges on fixing price for preferential issue

The stock surged 17% to Rs 727 on BSE in intra-day trade after the board fixed an issue price of Rs 800 per share for of 611,986 equity shares on preferential basis.

Sagar Cements has surged 17% to Rs 727 on BSE in intra-day trade after the board fixed an issue price of Rs 800 per share for of 611,986 equity shares on preferential basis.

In October, the board of directors of the company approved the fund-raising plan, which was primarily meant for expanding the capacity of the company's grinding unit at Bayyavaram in Andhra Pradesh to 1.5 million tonnes from the present Rs 3 lakh tonne level at a cost of around Rs 167 crore.

Besides this, about Rs 76 crore would be spent on setting up a 15 Mw coal-fired captive power plant at its main cement plant at Mattampally in Telangana.

To implement the above projects and for other general corporate purposes, the board had proposed to raise a sum not exceeding Rs 300 crore by way of issuance of securities, which includes the issue of 611,986 equity shares of Rs 10 each on a preferential basis to promoter and promoter group and to others, Sagar Cement said.

At 11:55 am, the stock was up 13% at Rs 703 on the BSE, as compared to 0.2% rise in the S&P BSE Sensex. A combined 208,548 shares changed hands on the counter against an average sub 20,000 shares that were traded daily in past two weeks on the BSE and NSE. The stock hit a record high of Rs 835 on October 14, 2016 on BSE in intra-day trade.