After the company said it was acquiring majority stake in a large Brazilian sugar and ethanol firm, the scrip of sugar refining major Shree Renuka Sugars Ltd (SRSL) rose more than 3.94 percent at the Bombay Stock Exchange during morning trade Monday.

Before settling to Rs. 184.10, the SRSL stock rose more than 3.94 percent to Rs. 187 during morning trade, an increase of 2.33 percent from its previous close at Rs. 179.90.

Shree Renuka Sugars said in a statement," We have entered into definitive agreements with Grupo Equipav for an investment of $329 million (Rs. 1,530 crore) leading to a majority, controlling equity stake in Equipav S. A. ACUCAR e ALCOOL (Equipav), one of the largest sugar or ethanol Companies in Brazil."

While the balance stake would be held by the founding Equipav group, Shree Renuka Sugars stake in the Equipav will be 50.79 percent, after the deal.

The money from the stake sale will be used by the Brazilian entity to expand its generation capacity in the sugar and ethanol based power segments.

Brazil is the world's largest producer and exporter of sugar, while India is the largest consumer.

The statement further said," This acquisition will significantly multiply SRSL's presence in the Centre-South region of Brazil and enhance its competitiveness and size in the global sugar business." (With Input from Agencies)