Birla Corporation witnessed a sharp rise in share price on Monday after the company has agreed to acquire Jojobera and Sonadih cement businesses (acquisition business) from Lafarge India for an enterprise value of Rs 50 billion. The transaction would be funded through existing cash reserves and incremental debt. The transaction would be carried either directly or through its wholly owned subsidiary and is subject to approval of Competition Commission of India and other relevant regulatory approvals.

Under this transaction, Birla Corp will acquire the acquisition business, which comprises of  an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding  unit  at Jojobera  Qharkhand), along with Concreto and PSC brands and an excellent management team. Acquisition business has a cement capacity of 5.15 million tonnes per annum (mtpa), with mineral rights over  adequate reserves of limestone.

Shares of Birla Corporation are trading at Rs 508.70, up Rs 55.75, or 12.31% at the Bombay Stock Exchange (BSE) on Monday at 10:57 a.m.

Total volume of shares traded on the bourses today was higher by 796.28% to 128,479 compared with 22-day average volume of 14,335.