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  5. Ambuja Cements, Ravi Sanghi seek to sell stake via OFS, Sanghi Industries stock falls 6%

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Ambuja Cements, Ravi Sanghi seek to sell stake via OFS, Sanghi Industries stock falls 6%

SUMMARY

Ambuja Cements is aiming to trim around 2.36% stake from Sanghi Industries, while Ravi Sanghi is set to offload a 1.16% equity in Sanghi Industries. This move follows Ambuja Cements' previous divestment in March to comply with public shareholding norms, reducing its stake in Sanghi Industries to 60.44%.

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SANGHIIND
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The OFS is scheduled to open for non-retail investors on June 26, 2024 and for retail investors on June 27, 2024.

The OFS is scheduled to open for non-retail investors on June 26, 2024 and for retail investors on June 27, 2024.

Shares of Sanghi Industries saw a decline of 6% in early trade on June 26, 2024. Ambuja Cements and Ravi Sanghvi, the key stakeholders in Sanghi industries, are set to sell a combined 3.52% stake through an offer for sale (OFS). OFS, or Offer for Sale, is a method by which promoters of a listed company can sell their shares directly through the stock exchange platform. This move implies Ambuja Cements’ strategy to comply with minimum public shareholding norms.

Ambuja Cements is aiming to sell around 2.36% of its stake translating to approximately 60.92 lakh shares. On the other hand, the former chairman and managing director, Ravi Sanghi will offload 30 lakh shares, or 1.16% equity, in the company. This combined sale will result in a total of 90.92 lakh shares being offered to investors.

The OFS is scheduled to open for non-retail investors on June 26, 2024 and for retail investors on June 27, 2024. The floor price for the sale has been set at ₹90 per share, representing an approximate discount of 12% to the previous closing price of ₹102 per share.

This stake sale is followed by a previous divestment announcement by Ambuja Cements in March 2024, where the company sold 51.66 lakh shares equaling a 2% equity stake in Sanghi Industries. This previous stake also aimed at meeting the regulatory requirement for minimum public shareholding. Ambuja Cements’s stakes in Sanghi Industries was reduced to 60.44% from 62.44%, after the divestment in March.

The current OFS will also reduce Ambuja Cements’s stake in Sanghi Industries. Ambuja Cements completed the acquisition of Sanghi Industries in December 2023 at a revised value of ₹5,185 crore. The acquisition was a part of Ambuja Cements’s expansion strategies within the cement industries.

At 12:40 PM, shares of Sanghi Industries were trading at 0.74% lower at ₹101.50 apiece on the NSE.

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