Kilburn Engineering Ltd, a company promoted by the Khaitan family of Calcutta, announced its third acquisition in the last 12 months and the largest yet by the company.

The company will pay ₹123 crore to buy Monga Strayfield Ltd, a Pune-based outfit that manufactures radio frequency drying and heating solutions, which are used in the textile industry in a major way.

Kilburn is going to finance the buyout with the issuance of fresh equity shares.

A meeting of the company’s board has been called on August 24.

Sources said the company is likely to raise about ₹130-150 crore.

The announcement came on a day the market capitalisation of Kilburn Engineering touched ₹2,000 crore, making it the largest company by market cap in the Williamson & Magor Group. The stock price has multiplied by over 10 times in the last two years, closing at ₹479.9 apiece on Wednesday.

Commenting on the Monga deal, Amritanshu Khaitan, director of Kilburn, said the acquisition will propel the company towards becoming a world class manufacturer of dryers and heating solutions.

In FY24, Monga reported a total revenue of ₹72.9 crore and a profit after tax of ₹15.41 crore. It has cash of ₹33.28 crore in the balance sheet.

Ranjit Lala, managing director of Kilburn, said: “We are excited to leverage their (Monga) domain knowledge in radio frequency drying and sheet metal fabrication.

The acquisition complements Kilburn’s offerings and enables us to serve a broader customer base with enhanced solutions.”