Orient Cement gains over 8% on reports of stake sale talks with Adani

As per a news report, this transition will trigger an open offer for an additional 26% stake in accordance with takeover laws

Orient Cement Ltd shares surged by nearly 8% following reports that the company's promoter, CK Birla, has approached Gautam Adani to sell his stake.

At 10am, the stock was trading at Rs 203 on BSE, up 7.5 percent from its previous close while India's benchmark Sensex rose 66,371 points, down 0.08 percent.

According to an ET report, Birla turned to Adani after rejecting initial offers from other domestic players that didn't meet his valuation demands. JP Morgan was previously engaged by Birla to find a buyer for his business.

Currently, the Birla family and private investment vehicles hold a 37.9% stake with a market value of Rs 3,890 crore. The stock has seen a 65 percent jump so far this year.

As per the news report, this transition will trigger an open offer for an additional 26% stake in accordance with takeover laws, requiring the incoming promoter or controlling entity to purchase the additional shares from existing minority investors.

Meanwhile, Orient Cement clarified that it is not aware of any such discussion and, as a result, cannot provide any comments on the matter.

Last year, the Gautam Adani-led group paid $6.4 billion in cash to acquire Switzerland-based Holcim’s 63.1% stake in Ambuja Cements and 54.5% holding in ACC Limited.