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

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

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.

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.

Next Story
Infrastructure Urban

Concord Control Systems Limited Reports ~85% YoY Growth in H1 FY26

Concord Control Systems Limited (BSE: CNCRD | 543619), India’s leading manufacturer of embedded electronic systems and critical electronic solutions, announced its unaudited financial results for the half year ended September 30, 2025.Financial Highlights – H1 FY26 (YoY Comparison)Revenue from Operations rose to ₹815.45 million, up from ₹497.53 million in H1 FY25, marking a 63.90% year-on-year growth.EBITDA increased to ₹217.34 million, compared to ₹142 million in the same period last year.EBITDA Margin stood at 26.65%, compared to 28.54% in H1 FY25, with the decline attributed to ..

Next Story
Infrastructure Urban

Gateway Distriparks Announces Q2 FY25 Results

Gateway Distriparks Limited (GDL), one of India’s leading multimodal logistics providers, announced its financial results for the quarter ended 30 September 2025.For Q2, the company reported total revenue of INR 154.8 crore (H1: INR 316.9 crore), EBITDA of INR 20.56 crore (H1: INR 45.65 crore), PBT of INR –4.23 crore (H1: INR –0.28 crore), and PAT of INR –2.91 crore (H1: INR –0.37 crore). The company stated that these numbers reflect the consolidation of accounts following Snowman Logistics transitioning from an associate company to a subsidiary in December 2024.Commenting on the per..

Next Story
Infrastructure Transport

Last-Mile Connectivity a Prime Focus, Says Ms. Ashwini Bhide,

The IMC Chamber of Commerce and Industry (IMC) hosted a high-impact Managing Committee session today on the theme “Mumbai Metro: Transforming Connectivity and Commuting.” The session featured an insightful address by Ms. Ashwini Bhide, Managing Director, Mumbai Metro Rail Corporation Ltd. (MMRCL), who shared updates on key transport infrastructure developments across Mumbai and the MMR region.Emphasising the city’s critical economic role, Ms. Bhide noted, “Mumbai is the economic powerhouse of Maharashtra, with more than 95% of the region’s population living in urban areas. As Maharas..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement