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Shares of cement maker Sanghi Industries rose as much as 5% to a more than five-year high on Wednesday on news that Adani-owned Ambuja Cements had reached a deal to buy a majority stake in the company's operations.

The deal by Ambuja is likely to be announced on Wednesday, two sources with direct knowledge of the matter told Reuters.

The deal was signed by considering Sanghi's enterprise value at 60 billion rupees ($728.20 million), one of the sources said.

Sanghi's stock is up nearly 40% so far in the second half of the calendar year. The Economic Times reported last week that Adani was among those leading the race to acquire Sanghi Cement.

Sanghi is one of the leading cement manufacturers from the western Indian state of Gujarat. It has a production capacity of 6.1 million metric tons per annum, according to its website.

The deal could add heft to the cement operations of billionaire Gautam Adani's firm. Adani is India's second-largest cement producer, behind UltraTech Cement.

It owns Ambuja and its subsidiary ACC that have a combined capacity to produce more than 65 million metric tons with more than a dozen manufacturing plants across India.

Ambuja Cements shares fell nearly 2% in early trading, before paring some losses.

The company on Wednesday also posted a 29% jump in June-quarter profit, excluding dividend income, helped by strong demand for its premium cement products and lower costs.