NEW DELHI: Shares of Birla Corporation BSE 14.67 % surged over 12 per cent in trade on Monday after the cement maker announced it is going to acquire Jojobera and Sonadih cement businesses from Lafarge India for an enterprise value of Rs 5,000 crore.

The stock hit an intraday high of Rs 516.50, up 14.14 per cent on the BSE.

A total of 19000 shares have so far changed hands, compared with a 2-week average of 7,167 on the BSE.

“The company has agreed to a transaction with Lafarge India Private Limited (Lafarge India), whereby Birla Corp, either directly or through its wholly-owned subsidiary, shall acquire both the Jojobera and Sonadih cement businesses from Lafarge India for an enterprise value of Rs 5,000 crore,” Birla Corporation said in a filing to BSE.

The transaction would be funded through existing cash reserves and incremental debt, and is subject to approval of Competition Commission of India (CCI) and other relevant regulatory approvals, the company added.

“The acquisition business together with the Concreto and PSC brands perfectly fit into our strategic vision and ambition of enhancing our competiteveness in our chosen markets,” said Hrash Lodha, Chairman of Birla Corp.

The company on Friday reported a lower net profit of Rs 16.64 crore in the first quarter ended June 30, against Rs 99.52 crore in the corresponding quarter of last year.