Disclosure of material issue

Andhra Cements' promoter, Sagar Cements, has sold 71,48,978 equity shares (representing 7.76% of total capital) through an Offer for Sale on the stock exchange. **The Issue:** The company's promoter shareholding stood at 90%, exceeding the regulatory requirement for Minimum Public Shareholding (MPS). **Company's Response:** This share sale is a key step towards achieving the 25% MPS norm.

Post-sale, the promoter's holding has reduced to 82.24%, while public shareholding has increased to 17.76%. The company is in the process of reaching full MPS compliance within the stipulated time. **Possible Impact:** This proactive measure reduces the risk of regulatory penalties related to MPS non-compliance and increases the public float, which could potentially improve stock liquidity.

Investors should monitor the company's continued efforts to reach the full 25% public shareholding.