Shares of Akzo Nobel India jumped over 7 per cent on Friday after Sajjan Jindal's JSW Paints announced the acquisition of Dutch paint maker Akzo Nobel's India unit in a Rs 12,915-crore deal.

The stock surged 6.65 per cent to settle at Rs 3,405 apiece on the BSE. During the day, it jumped 10.66 per cent to Rs 3,533.

On the NSE, shares of the firm zoomed 7.20 per cent to end at Rs 3,419 each.

The company's market valuation climbed Rs 967.28 crore to Rs 15,506.48 crore.

JSW Paints on Friday announced the acquisition of Akzo Nobel's India unit in a Rs 12,915-crore deal to become the fourth-largest player in the paint industry in the country.

Sajjan Jindal's JSW Paints will buy a 74.76 per cent stake in Dulux paint-maker Akzo Nobel India for Rs 8,986 crore and launch an open offer to buy another 25 per cent from the open market for up to Rs 3,929.06 crore.

"JSW Paints today (Friday) entered into definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India from Akzo Nobel NV and its affiliates, for a maximum consideration under the share purchase agreement of up to Rs 8,986 crore," it said.

Akzo Nobel NV, in a statement, said it has signed an agreement to sell its shareholding in Akzo Nobel India Ltd (ANIL) to JSW Group.

"The transaction is based on a total enterprise value of approximately 1.4 billion euro, representing an EV/EBITDA multiple of 22x, and includes AkzoNobel's liquid paints and coatings business in India," it said.

However, the Dutch parent firm also said the India Powder Coatings business and International Research Centre, both currently part of ANIL, will be "retained by Akzo Nobel" under full ownership. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)