Shares of Orient Cement experienced a remarkable surge of 14.5% during the early trading hours this Wednesday, hitting a new 52-week peak at ₹214.8 each. The driving force behind this sudden uptick was the buzz around industrial magnate CK Birla’s potential sale of his promoter stake in the company to Gautam Adani, as reported by reliable sources.
As disclosed by The Economic Times, CK Birla initiated discussions with Gautam Adani after rejecting preliminary offers from domestic players that fell short of his valuation expectations. The discussions have progressed significantly, with top-level executives from both camps engaging in talks about a possible agreement. It’s noteworthy that Adani, who already boasts India’s second-largest cement capacity, recently bolstered his holdings with the acquisition of Sanghi Industries, giving him a total cement capacity of 110 MTPA.
These discussions, as reported by ET, have been ongoing for several months. However, the outcome remains uncertain due to CK Birla’s valuation demand, which stands at twice the current market price. This lofty asking price could potentially act as a deal-breaker in these negotiations.
It’s crucial to recognize the context of this development: CK Birla Group, a venerable conglomerate with a legacy spanning more than a century, is the entity behind Orient Cement. This group stands tall as one of India’s most diversified conglomerates, with a footprint across numerous sectors, including manufacturing, automotive, healthcare, and technology.
At 2:13 PM, the company’s shares were trading at ₹209.65, reflecting a significant 10.87% increase from the previous day’s closing price.
