Shares of Kilburn Engineering surged 3% on 22 August after the company announced its plans to acquire a 100% stake in Monga Strayfield Pvt Ltd. 

The company in its regulatory filing said that the Board of Directors of the company have approved the proposal to acquire a 100% stake in Monga Strayfield Pvt Ltd for a total consideration of Rs 123 crore. The acquisition is a strategic move to enhance the company’s portfolio and broaden its reach across various industries. 

The engineering company is engaged in designing, manufacturing, and commissioning of customised equipment and systems for major giants, including Pepsi, Reliance, Mondelez, and many other well-known companies. 

Monga Strayfield Pvt. Ltd. is a prominent player in the global market for radio frequency drying and heating solutions, with a significant presence in the sheet metal fabrication industry, serving both the US and European markets. For the fiscal year 2024, the company reported a total revenue of Rs 72.90 crores, a profit after tax (PAT) of Rs 15.41 crores, and a closing cash balance of Rs 33.28 crores.

The acquisition will significantly increase the company’s drying solutions portfolio by adding new capabilities in radio drying and heating. This will also help the company expand its each into industries such as textiles and packaged foods. 

Moreover, Monga Strayfield’s expertise in sheet metal fabrication offers the company a separate vertical that can strengthen its position in the international market.c

Mr. Ranjit Lala, Managing Director of Kilburn Engineering Ltd., said, “We are delighted to bring Monga Strayfield into our fold and are excited to leverage their domain knowledge in radio frequency drying and sheet metal fabrication. This acquisition complements Kilburn’s offerings and enables us to serve a broader customer base with enhanced solutions.”  

However, at 3:30  pm, the shares of Kilburn Engineering shed all their early gains and closed 1.65% lower at Rs 472 on NSE.

Discover the next big investment! Unicorn Signals’ IPO screener helps you identify promising initial public offerings. Download Unicorn Signals and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!