Kilburn Engineering to consider fundraising on August 26; stock up 3%

Shares of Kilburn Engineering, an engineering and manufacturing firm, gained as much as 3.14% to ₹495 apiece on the BSE in the morning trade on Thursday, August 22, a day after the company announced the proposed acquisition of Monga Strayfield, a global leader in radio frequency drying and heating solutions, for a total consideration of up to ₹123 crore.

Besides, in a separate announcement, the company informed bourses that its board will meet on Monday, August 26, to consider proposals for raising funds through the issuance of equity shares and/or warrants or any other eligible securities.

This acquisition of Monga Strayfield is aimed at a strategic and synergistic partnership that will enhance Kilburn’s portfolio and broaden its reach across various industries, the company said in its press release.

Monga Strayfield, established in 1968, brings over five decades of expertise in radio frequency drying and heating solutions, alongside a strong presence in the sheet metal fabrication industry, catering to both the US and European markets, it said.

In FY24, the company reported a total revenue of ₹72.90 crore, a PAT of ₹15.41 crore, and a closing cash balance of ₹33.28 crore.

"The proposed acquisition of Monga Strayfield will significantly augment Kilburn's drying solutions portfolio, adding new capabilities in radio frequency drying and heating, while expanding its reach into industries such as textiles and packaged foods," the company added.

Additionally, Monga Strayfield’s expertise in sheet metal fabrication offers a separate vertical that strengthens Kilburn's position in international markets, it added.

Kilburn Engineering stock performance

Shares of the company have rallied an impressive 215% in the past 12 months and 2,395% over the past five years.