Kirloskar Oil Engines to acquire balance 24% stake in La Gajjar Machineries; stock rallies ~5%

22 Sep 2022 , 10:15 AM

Kirloskar Oil Engines Limited (KOEL) announced that it will purchase the remaining stake in La-Gajjar Machineries Private Limited (LGM), Ahmedabad.

Kirloskar Oil, a global pioneer in the production of diesel engines, agricultural equipment, and generator sets, has already acquired a 76% stake in LGM in the year 2017.

Under the said agreement, the company agreed that the balance holding will be acquired by KOEL over a 5-year period.

LGM will become a 100% subsidiary of KOEL if the transaction is completed within the previously agreed-upon deadlines.

With a solid management team in place, LGM will focus on growing this business to its full potential, expanding and broadening its reach, and using KOEL’s capabilities in channel, service, manufacturing, and R&D to create a world-class, self-sustaining organisation, stated the company in its media release.

Kirloskar Oil Engines was trading at Rs245 up by 4.63% from its previous closing of Rs234.15 on the BSE. The scrip opened at Rs236.15 and touched intraday high and low of Rs247.65 and Rs235 respectively.

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