Shares of Orient Cement fell in the early trade on February 23 after Adani Power Maharashtra (APML) terminated a non-binding deal with it.
Adani Power Maharashtra (APML) has requested Orient Cement not to pursue the venture further as they are not able to obtain the required MIDC clearances for sub-leasing the land parcel required for the Cement Grinding Unit (CGU) due to some legal issues, the company said in a press release.
Also, the timelines as agreed upon according to the memorandum of understanding have crossed, it added.
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In September 2021, Orient Cement entered into the non-binding MoU with Adani Power Maharashtra for setting out the understanding for facilitating bona fide use of land identified for exploring the possibility of setting up a cement grinding unit at Tiroda.
The significant terms of the MoU include providing the said land, where Adani Power Maharashtra is the lawful lessee, and to obtain required environmental clearances and approvals for subleasing of the land and use of railway siding facility from the regulatory authorities.
The company in its quarterly earnings, reported a net profit of Rs 27.52 crore in December 2022, down 36.99 percent from Rs 43.67 crore a year back. Its revenue was, however, up 18.5 percent to Rs 732.29 crore from Rs 617.53 crore.
At 9:17am, Orient Cement was quoting at Rs 116.35, down Rs 1.15, or 0.98 percent, on the BSE.