Kilburn Engineering surged 8.25% to Rs 471.10 after the company's board has approved the acquisition of 100% stake in Monga Strayfield for total consideration of Rs 123 crore.
Monga Strayfield is an engineering company and is a leading player in the business of manufacturing radio frequency dryers and heating solutions. Its total revenue for the financial year 2023-24 was Rs 72.90 crore.This acquisition will help the company to achieve its next phase of growth with the help of enhanced manufacturing capabilities and expand its dryers portfolio.
The company will acquire 100% stake for total consideration of Rs 123 crore. The consideration will be settled through a combination of cash and non-cash method, with adjustments based on due diligence findings and terms to be agreed in the definitive agreements.
The acquisition is likely to be completed before 31 December 2024.
Kilburn Engineering specializes in process design, engineering and manufacture of equipment and systems for various process plants, primarily engaged in the chemical and petrochemical sectors. The company is a market leader in solid, liquid and gas drying systems and also provides a comprehensive package of solutions for tea, fertiliser, carbon black, soda ash, pharmaceuticals, dyes and pigments and speciality chemicals among other industries.
The companys standalone net profit jumped 50.7% to Rs 10.70 crore in Q1 FY25 as against 7.10 crore posted in Q1 FY24. However revenue from operations declined 4.3% YoY to Rs 63.81 crore in Q1 FY25.
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