Kirloskar Ferrous up on acquisition plan

DALAL STREET SPIKES

Kirloskar Ferrous Industries jumped 9.86 per cent to Rs 38.45 on getting board's approval to acquire the castings division of Kirloskar Oil Engines for Rs 21 crore. 86,665 shares were traded on the BSE.

The company's board has approved the acquisition of the castings division of Kirloskar Oil Engines at Shivashahi, Solapur, with all its assets and liabilities for a consideration of Rs 21 crore.

The acquisition of castings division of Kirloskar Oil Engines will form part of the objects of the forthcoming rights issue and the consideration for the acquisition will be paid out of the proceeds of the issue.

The company, promoted by Kirloskar Oil Engines and Shivaji Works, manufactures pig iron and ferrous castings.