The Gautam Adani Group has been facing a series of setbacks in recent times. After the Hindenburg Report and revelations on Wikipedia, the group’s troubles seem to mount continuously. On Wednesday, Orient Cement, a CK Birla Group company, announced that it had cancelled its non-binding MoU with Adani Power Maharashtra Limited (APML). Before this, DB Power had also cancelled its deal worth 7000 crores with Adani Power, and Adani’s contract with government company PTC India has also been terminated.
What Did Orient Cement Say?
Orient Cement stated in a regulatory filing that “APML has requested the company not to proceed with this business as they are unable to lease the land required for CGU due to certain legal issues.” Orient Cement had agreed to set up a Cement Grinding Unit (CGU) with Adani Power Maharashtra Limited in Tiroda, Maharashtra. Still, it has been put on hold due to legal reasons. The timelines as per the MoU have also been exceeded. As a result, Orient Cement has accepted APML’s position, and the non-binding MoU has ended.
Shares Of Both The Companies Declined
Shares of both companies have taken a hit due to this development. On the National Stock Exchange, shares of Orient Cement closed at ₹118.00 per share, a decline of 1.34% on Wednesday, while shares of Adani Power closed in the lower circuit of 5%.
