This smallcap company soars 10% on deal to acquire Monga Strayfield for ₹123 crore

The spurt in Kilburn's shares came after the company informed the bourses that it is acquiring Monga Strayfield, a Pune-based company, for ₹123 crore.

After the deal was announced, Kilburn's stock reached ₹485 apiece on the BSE, up 11.4% as against the last closing price. The shares are not listed on the National Stock Exchange (NSE).

Notably, Monga Strayfield is a manufacturer of radio frequency dryers and heating solutions. Kilburn Engineering, in a regulatory filing, said the acquisition will help to "achieve its next phase of growth with the help of enhanced manufacturing capabilities and expand its dryers portfolio".

The acquisition is likely to be completed before December 31, 2024, the filing added. Upon completion, Kilburn will own 100% stake in the acquired company.

The deal would be executed through a "combination of cash and non-cash consideration" aggregating up to ₹123 crore, it further noted.

Monga Strayfield's financials

In the financial year ended March 31, 2024, the company had logged a total revenue of ₹72.9 crore, higher as compared to ₹58.2 crore in the preceding fiscal year.

The net profit came in at ₹15.41 crore in FY24, and the cash and bank balance as of March 31 stood at ₹33.28 crore.

Kilburn Engineering shares

By 2:40 pm, the stock retreated from the day's highs, but was still trading 8.44% higher at ₹471.95.

Year-to-date, Kilburn's shares have climbed by around 67%, and the surge has been sharper at about 191% over the past 12 months.