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Billionaire Gautam Adani-led Adani Group on Tuesday said it will acquire CK Birla group firm Orient Cement at a valuation of Rs 8,100 crore, as part of its expansion drive.

With this acquisition Adani Cement will achieve a capacity of 100 MT (million tones) per annum by end of FY25 and a gain of 2 per cent in the overall market share in the country.

Adani Cement has signed a binding agreement for the acquisition of Orient Cement Ltd (OCL) at an equity value of Rs. 8,100 crore.

As per that, its step down unit “Ambuja will acquire 46.8 per cent shares of OCL from its current promoters and certain public shareholders”, according to a joint statement.

The acquisition will be fully funded through internal accruals, it added.

The latest acquisition will add 16.6 MTPA capacity to the growth-hungry Adani group firm, which operates through Ambuja Cements in the sector.

Besides, this deal will also help Adani group, which is aspiring to have 140 MTPA capacity by FY28, reduce the overall logistics costs for the cement business and improve market share.

In June, Adani had announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, which added 14 MTPA capacity to the country’s second largest cement manufacturer.

In December last year, it completed the acquisition of Saurashtra-based Sanghi Industries Ltd at an enterprise value of Rs 5,185 crore.

Commenting over the latest development Ambuja Cements Director Karan Adani said: “This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition.” By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY25, he added.

“The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2 per cent,” Adani added.

OCL has 5.6 MTPA of clinker capacity and 8.5 MTPA of cement capacity along with the statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA C K Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer-centric, technology-driven and service-based businesses.” “We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders,” he said.

Adani Group entered into the cement sector in September 2022 after acquiring controlling stakes in Ambuja Cement from Swiss firm Holcim for cash proceeds of USD 6.4 billion (about Rs 51,000 crore). Ambuja Cements owns a 51 per cent stake in ACC Ltd.

Later it also launched a Rs 31,000-crore open offer for the acquisition of 26 per cent additional stakes from public shareholders.

According to data from the Cement Manufacturers Association, the country has a total of 541 metric tonnes (MT) of installed cement capacity.

The Indian cement market is led by Aditya Birla group firm UltraTech Cement Ltd, which has a consolidated capacity of 152.7 MTPA.

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Foreign investors sold Indian equities worth Rs19,065.79 crore from October 14-18, a decrease from Rs31,568.03 crore the previous week.

Foreign investors continued selling Indian equities this week, though at a slower pace compared to the previous week, according to data from the National Securities Depository Limited (NSDL).

Between October 14 and October 18, Foreign Portfolio Investors (FPIs) sold Indian equities worth Rs19,065.79 crore. This marks a significant reduction from the previous week, when FPIs offloaded equities worth Rs31,568.03 crore.

Despite the slower sell-off, October has recorded the highest FPI outflows in recent history. So far this month, foreign investors have sold a net Rs77,701 crore in equities, surpassing the COVID-19-induced sell-off of March 2020, when Rs61,972.75 crore was offloaded. This makes October a historic month for heavy selling pressure by FPIs.

Ajay Bagga, a banking and market expert, told ANI, “The markets had factored in regular, sharp Federal Reserve rate cuts after the surprising 50 bps cut in September. However, US economic data since then has shown a strong economy, with a ‘no-landing’ scenario. This has led to a strong US dollar, which has risen over the past three weeks. US yields have also increased. These factors have a negative correlation with emerging market flows. India’s FII outflows were partly due to this, as well as the China stimulus announcement, which led to a sharp rise in Chinese markets.”

Interestingly, despite the significant sell-off, key stock market indices like the Nifty 50 and Sensex have shown resilience. Both indices are down by only around 5 per cent from their 52-week highs, indicating strong support from domestic investors.

Data from the National Stock Exchange (NSE) shows that domestic investors, including Domestic Institutional Investors (DIIs), have injected significant capital into the market. In October alone, they invested Rs74,176.20 crore in equities, helping to absorb the selling pressure from FPIs and preventing a more severe downturn.

“India represents elevated market levels with historically high valuations, which seem over-exuberant given the slowing economy, persistent inflation, high taxes, and high interest rates. On top of this unfavourable macroeconomic environment, we have seen underwhelming earnings announcements across sectors. This has contributed to the continued FII outflows from Indian markets,” Bagga added.

The dynamic between foreign outflows and strong domestic participation underscores the growing importance of local investors in stabilising the Indian stock market, even during periods of heavy global investor selling.

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Oberoi Realty on Monday, October 21, said it launched its latest integrated development project – Oberoi Garden City Thane – on October 18 and recorded gross booking value of ₹1,348 crore for 5.65 lakh square feet over the first three days.

Oberoi Garden City is spread across 75 acre and has over 30 world-class amentities, including a 5-star JW Marriott Hotel Thane Garden City, a private membership club and an Oberoi International School.

The first phase of the development comprises five residential towers with expansive gardens. The bookings for two of these towers started on October 18, 2024.

The homes will comprise three bedroom and three bedroom + studio apartments starting at 1,475 square feet and will rise over 65 storey.

“We are thrilled by the tremedous response to the launch of our latest project at Oberoi Garden City Thane. This project epitomizes our vision of delivering a holistic, luxurious living experience and we believe it will set a new benchmark for luxury in Thane,” Vikas Oberoi, the chairman and managing director of Oberoi Realty said.

On another note, Oberoi Realty reported a 28% increase in its September quarter net profit at ₹589.4 crore. Its revenue from operations increased 8.4% to ₹1,320 crore from ₹1,217.4 crore in the previous year.

At the operating level, EBITDA jumped 27.5% to ₹813.8 crore in the second quarter and the EBITDA margin stood at 61.7% in the reporting quarter as compared to 52.4% in the previous year.

The company’s board of directors declared a second interim dividend for FY25 at the rate of ₹2 per equity share i.e. 20% of the face value of equity shares of ₹10 each. November 4, 2024 is the record date for the payment of the interim dividend.

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Zee Entertainment Enterprises (ZEEL) on Friday reported a net profit of Rs 209.4 crore in the second quarter of the financial year (Q2 FY25), rising 70.2 per cent year-on-year (Y-o-Y) after it cut costs.

The Mumbai-headquartered company’s revenue dropped by almost 18 per cent to Rs 2,000.7 crore compared to Rs 2,437.8 crore in the same quarter last year.

“Domestic advertising revenue for the quarter declined by 9 per cent Y-o-Y, impacted by a muted advertising spending environment in Q2,” said ZEEL in its earnings presentation. “While ad spending is picking up with the onset of the festive season, sustained recovery remains the key.”

The entertainment major’s profit before depreciation, interest and taxes was down 16.8 per cent Y-o-Y to Rs 109.1 crore. It said that a decline in operating cost was driven by lower programming and technology costs.

ZEEL’s other income slumped by 53 per cent to Rs 33.7 crore Y-o-Y. On a sequential basis, other income increased by 77.4 per cent.

“Other sales and services declined Y-o-Y as Q2 FY24 had higher theatrical revenue from Gadar 2 and other syndication,” said the company, referring to the Bollywood movie.

Subscription revenue has grown more than 9 per cent Y-o-Y in the last three quarters, according to the earnings presentation. Revenue from Zee5, the company’s online streaming platform, stood at Rs 236.6 crore in Q2 FY25 during which it released 16 shows and movies, including five originals.

“Significant progress has been made towards achieving a balanced cost structure, to sustain long-term growth in ZEE5,” said the company. ZEEL had earlier announced it is trimming its workforce to save costs.

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Byju Raveendran, the founder of the embattled edtech group Byju’s, acknowledged on Thursday afternoon that he made mistakes, mistimed the market, overestimated growth potential, and that his startup, once valued at $22 billion, is now effectively worth “zero.”

Speaking to a group of journalists, Raveendran said the company’s aggressive acquisition of more than two dozen startups to expand into new markets proved fatal when financing dried up in 2022. Byju’s was planning to go public in early 2022 with several investment bankers giving the firm valuation as high as $50 billion.

He alleged that many of his more than 100 investors had urged him to pursue aggressive expansion into as many as 40 markets. But, he added, those very investors got cold feet when global markets tumbled following Russia’s invasion of Ukraine, sending the venture capital market into a downward spiral.

Raveendran said many of his investors “ran away,” and the departure of three key backers — Prosus Ventures, Peak XV, and Chan Zuckerberg Initiative — from the company’s board last year made it impossible for the startup to raise additional funds.

Representatives of the aforementioned three firms as well as auditor Deloitte left the startup’s board last year, citing governance issues.

Byju’s has since entered insolvency proceedings, and Raveendran, who no longer controls the company, said: “It’s worth zero. What valuation are you talking about? It’s worth zero.”

Byju’s, once India’s most valuable startup, counts BlackRock, UBS, Lightspeed, QIA, Bond, Silver Lake, Sofina, Verlinvest, Tencent, Canada Pension Plan Investment Board, General Atlantic, Tiger Global, Owl Ventures, and World Bank’s IFC among its backers. It has raised more than $5 billion to date.

Raveendran said he remains hopeful that his startup will make a comeback. “I have nothing to lose. I came from a small village. I invested everything I had into the startup.”

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