Birla Corporation rose 17.39% to Rs 531.70 at 13:38 IST on BSE after the company announced that it has agreed to acquire two cement units of Lafarge India.
The announcement was made before trading hours today, 17 August 2015.
Meanwhile, the BSE Sensex was down 183.91 points, or 0.66%, to 27,883.40.
On BSE, so far 58,000 shares were traded in the counter, compared with an average volume of 4,243 shares in the past one quarter.
The stock hit a high of Rs 532 and a low of Rs 454.90 so far during the day. The stock hit a record high of Rs 614.85 on 19 August 2014. The stock hit a 52-week low of Rs 385.20 on 27 March 2015.
The stock had outperformed the market over the past one month till 14 August 2015, rising 2.85% compared with 0.48% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 11.33% as against Sensex's 3.17% rise.
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The mid-cap company has an equity capital of Rs 77.01 crore. Face value per share is Rs 10.
Birla Corporation (Birla Corp) today, 17 August 2015, announced that it has agreed to a transaction with Lafarge India, whereby Birla Corp, either directly or through its wholly-owned subsidiary, will acquire both the Jojobera and Sonadih cement units (Acquisition Business) from Lafarge India for an enterprise value of Rs 5000 crore. The transaction would be funded through existing cash reserves and incremental debt, and is subject to approval of Competition Commission of India and other relevant regulatory approvals.
Under this transaction, Birla Corp will acquire an integrated cement unit at Sonadih in Chhattisgarh, a cement grinding unit at Jojobera in Jharkhand and the two cement brands Concreto and PSC. These two units have a total installed capacity of about 5.15 million tonnes per annum (mtpa), with mineral rights over adequate reserves of limestone. Upon completion of this transaction, Birla Corp will consolidate its position in the Eastern India cement market where demand supply scenario and outlook continue to remain buoyant, the company said in a statement. Post completion of this transaction, Birla Corp will have a total capacity of about 15 mtpa. With the addition of Concreto and PSC brands to its existing basket of brands, Birla Corp will derive synergy benefits through consolidation of its capacity, the company said.
Birla Corporation's net profit declined 83.28% to Rs 16.64 crore on 9.99% decline in net sales to Rs 773.48 crore in Q1 June 2015 over Q1 June 2014.
Birla Corp is part of the MP Birla Group, with presence across cement and jute. Cement business contributes more than 90% to the company's revenue.
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