Sagar Cements Ltd.

Sagar Cements Ltd.

Sagar Cements Ltd.

March 2022

Announced Date: March 2022

Value: USD 46.0 million

Sagar Cements raises funding from Premji Invest.

We are pleased to announce that our client, Sagar Cements Ltd. (“Sagar") has successfully raised equity funding to the tune of Rs. 350 Cr via preferential Allotment to PI Opportunities Fund - Scheme II (“PIOF”), an affiliate of Premji Invest.

Established in 1985, Sagar is India’s lowest cost cement producer with a current installed capacity of 8.25 MTPA. Although its core market is the Southern region, Sagar has also expanded its market presence in East and Central India through its recent acquisitions

Premji Invest is India's leading Private Equity Fund with an AUM of ~USD 14 billion. The Fund has investments across sectors including Industrials, Financial Services, Consumer & Enterprise Tech, Consumer & Retail, Pharma and Manufacturing.

The proceeds of the current equity issue will be largely utilized towards meeting the organic and inorganic expansion plans of the Company along with funding its general corporate purposes. Post the investment, PIOF will own 10.10% of the Company.

Commenting on the development, Mr. S Sreekanth Reddy, Joint Managing Director, Sagar Cements said, “We are delighted to partner with Premji Invest and look forward to their inputs towards strengthening our processes and systems and enhancing value for all our stakeholders.”

Added Rajesh Ramaiah, Partner at Premji Invest “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.”

"The partnership with Premji Invest would help Sagar in setting up a best-in-class governance process and would also help Sagar in achieving its future growth plans of becoming a Pan India Player", added Srinivas T. R., Managing Director at o3 Capital.

o3 Capital acted as the Exclusive Financial Advisor to Sagar on the transaction.