CK Birla eyes Adani deal, Orient Cement stake up for grabs

19 Oct 2023 CW Team

The promoter stake in Orient Cement, held by the Birla family and private investment vehicles, amounts to 37.9% with a current market value of Rs 3,878 crore. The company's stock price surged by 29% in the past three months in anticipation of a potential sale. Once the transition occurs, it will trigger an open offer for an additional 26% stake in compliance with takeover laws, requiring the incoming promoter or controlling entity to buy these additional shares from existing minority investors.

Adani Cement, which already owns India's second-largest cement capacity, is considering this opportunity. However, formal talks have only recently taken place, and there's no guarantee that the discussions will result in a transaction, as cautioned by insider sources.

Birla's expectations of a significantly higher valuation, doubling the current market price to factor in the control premium, could pose a challenge to the deal. Orient Cement is evaluating valuation benchmarks based on the Ambuja-ACC sale to Adani Cement, primarily due to access to limestone reserves that could potentially double the company's capacity to 16 million tonnes per annum (MTPA). While JSW Cement did express interest with a non-binding offer, it did not progress further.

Access to limestone reserves is a crucial factor in such deals, as it helps in increasing manufacturing capacities. Adani Cement's recent acquisition of Sanghi Industries for Rs 50 billion emphasised the importance of limestone reserves in determining premium valuation. Orient Cement's current footprint includes manufacturing plants in Telangana, Maharashtra, and Karnataka, supplying to 11 states in central, western, and south India. The company plans significant capital expenditure, particularly for its Karnataka unit, in the coming months.

Industrialist CK Birla has turned to Gautam Adani to sell his promoter stake in Orient Cement, a listed company, after rejecting initial offers from other domestic players that didn't meet his valuation demand. Talks between the two parties have been ongoing for the past few months, involving senior management executives from both sides. Birla had enlisted JP Morgan earlier in the summer to find a buyer for his business. The promoter stake in Orient Cement, held by the Birla family and private investment vehicles, amounts to 37.9% with a current market value of Rs 3,878 crore. The company's stock price surged by 29% in the past three months in anticipation of a potential sale. Once the transition occurs, it will trigger an open offer for an additional 26% stake in compliance with takeover laws, requiring the incoming promoter or controlling entity to buy these additional shares from existing minority investors. Adani Cement, which already owns India's second-largest cement capacity, is considering this opportunity. However, formal talks have only recently taken place, and there's no guarantee that the discussions will result in a transaction, as cautioned by insider sources. Birla's expectations of a significantly higher valuation, doubling the current market price to factor in the control premium, could pose a challenge to the deal. Orient Cement is evaluating valuation benchmarks based on the Ambuja-ACC sale to Adani Cement, primarily due to access to limestone reserves that could potentially double the company's capacity to 16 million tonnes per annum (MTPA). While JSW Cement did express interest with a non-binding offer, it did not progress further. Access to limestone reserves is a crucial factor in such deals, as it helps in increasing manufacturing capacities. Adani Cement's recent acquisition of Sanghi Industries for Rs 50 billion emphasised the importance of limestone reserves in determining premium valuation. Orient Cement's current footprint includes manufacturing plants in Telangana, Maharashtra, and Karnataka, supplying to 11 states in central, western, and south India. The company plans significant capital expenditure, particularly for its Karnataka unit, in the coming months.

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..