Sagar Cements will raise over Rs 350 crore from the preferential issue. The firm will largely utilize the proceeds towards meeting its organic and inorganic expansion plans along with funding its general corporate purposes.

Premji Invest is the family office of Wipro chairman Azim Premji, specializing in private equity and venture capital investments.

Post the investment, PIOF will own 10.10% of Sagar Cements and will have a nominee on the board. Promoters' ownership in the company, after the allotment will be at 45.20% (from 50.28%).

Rajesh Ramaiah, Partner at Premji Invest, added: Sagar Cements is a niche cement player with demonstrated cost leadership and a growing position in its focus markets in southern part of India. It has had a remarkable journey since inception and with expansion outside southern India through organic and inorganic plans, it is well positioned to become a pan India player. He further said that they look forward to working together and helping the Company achieve its growth objectives and becoming a pan India brand with best-in-class governance processes.

PIOF will work with the promoters and the company in setting up a best-in-class governance process, through appointment of advisors / independent directors as appropriate, in consultation with other stakeholders in an endeavour to drive value creation for all the shareholders.

Sagar Cements is one of India's leading cement manufactures. Its consolidated net profit declined 89.27% to Rs 5.33 crore on 8.25% decline in net sales to Rs 333.65 crore in Q3 December 2021 over Q3 December 2020.

Shares of Sagar Cements rose 1.51% to Rs 254.85 on Friday.

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