The two companies had inked a non-binding MoU in September 2021 for the setting up of a cement grinding unit in Maharashtra’s Tiroda
Orient Cement on February 22 informed the stock exchanges that its memorandum of understanding (MoU) with Adani Power Maharashtra Ltd (APML), for the setting up a cement grinding unit in Maharashtra, stands “terminated”.
The two companies had inked a non-binding MoU in September 2021, for setting out the understanding for “facilitating bona fide use of land” identified for establishing a cement grinding unit in Maharashtra’s Tiroda.
Orient Cement said APML has requested it not to pursue the venture further as “they are not able to obtain the required MIDC clearances for sub-leasing the parcel of land required for the CGU, due to some legal issues”. Also, “the timelines as agreed upon as per MoU have crossed”, it added.
“The company has accepted the position of APML and accordingly, the said non-binding MoU stands terminated,” the cement maker further said.
This comes a couple of days after Adani Power called off the acquisition of DB Power, around six months after announcing that it would be acquiring the Chhattisgarh-based power company in a Rs 7,000 crore deal.
Adani Power, along with other listed entities of Adani Group, has suffered a hammering at the stock market since January 24, when US-based short seller Hindenburg Research released a report alleging “stocks manipulation” and “accounting fraud”. The listed firms of the embattled conglomerate have cumulatively shed over Rs 10 lakh crore.
Adani Power’s financial results for the third quarter, released on February 8, showed a 96 percent on-year decline in consolidated net profit at Rs 8.77 crore. The company’s shares, at the market closing hours on February 22, were priced at Rs 162.60 at the BSE, which was five percent lower than the previous day’s close.
