HDIL buys Kilburn's Bhandup property

Brij Mohan Khaitan-controlled Kilburn Engineering has entered into a memorandum of understanding (MoU) with Housing Development and Infrastructure (HDIL) for selling its property in Bhandup, Mumbai, for Rs 124.70 crore.

Amritanshu Khaitan, director, Kilburn Engineering, said the substantial cash flow from sale of the 8.32-acre plot would enable the company to implement its relocation. The company's plant is located at Bhandup, which would now be relocated.

The relocation project is estimated at Rs 45 crore and will be completed in 12-15 months. During the year, the company expects a turnover of Rs 80-85 crore, a growth of 25 per cent over last year.

The company's order book as on date stands at Rs 50 crore.

Khaitan pointed out that the company was currently debt-free, barring working capital from banks.

The Kilburn Engineering stock was up by more than eight per cent to Rs 74 on the Bombay Stock Exchange (BSE).

In a statement, HDIL said the company was expecting a revenue of Rs 600 crore from the development and a profit of Rs 200 crore.

The HDIL stock was up 3.59 per cent to Rs 519.85 on the BSE.