Monarch Surveyors and Engineering Consultants Limited has approved the execution of a binding agreement to acquire 100% of the equity share capital of GMR Engineering Services for AUD $1.74 million. The Board of Directors approved the transaction on June 03, 2026, enabling the company to establish a wholly owned subsidiary in Australia. The acquisition is contingent upon the completion of customary conditions precedent and is targeted for settlement on June 30, 2026.

The target entity, GM & FE Ryan Pty Ltd, acts as the trustee for GMR Engineering Services Unit Trust. Operating from Shepparton, Victoria, the firm provides engineering consulting and land surveying services with 12 full-time employees. The business reported an annual revenue of AUD $1.8 million in FY2025 and forecasts AUD $2.2 million for FY2026. It is debt-free with 100% owned assets valued at approximately AUD $310,700.

Acquisition Structure and Consideration

The transaction involves an entirely cash consideration with no share swap or deferred equity. The total acquisition cost of AUD $1,741,140 comprises an enterprise value of AUD $1,500,000 and plant and equipment valued at AUD $241,140. A purchase deposit of AUD $15,000 is payable within seven business days of the binding agreement execution. The company will fund the acquisition through internal accruals post-IPO listing or a specific bank acquisition term loan, explicitly stating that IPO net proceeds will not be utilized.

Strategic Rationale and Impact

This acquisition marks Monarch's strategic entry into the Australian engineering market. The target entity operates within Monarch's main line of business, offering services such as civil and structural engineering, land surveying, drone surveying, and project management. The deal provides immediate access to seven Australian Government procurement panels and leverages a 20-year operating track record with an approximately 80% client retention rate.

The company expects the acquisition to contribute revenue between AUD $1.76 million and AUD $1.84 million in FY2026. Projections indicate growth to AUD $2.14 million to AUD $3.22 million by FY2030 across three growth scenarios. The transaction does not constitute a related party transaction, and no promoters or promoter group companies hold any interest in the target entity.

Regulatory Approvals and Timeline

Completion of the acquisition requires regulatory filings under the Foreign Exchange Management (Overseas Investment) Rules, 2022. The company must file Form ODI Part I with an Authorised Dealer Bank before any fund remittance and Form ODI Part II within 30 days of completion. Annual Performance Reports must be submitted within 60 days of the target entity's financial year-end. The company has informed BSE Limited regarding the board approval under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Monarch Surveyors & Engg. Consultants has secured a Letter of Acceptance from Southern Railway to provide project management services valued at Rs 2,02,00,500.24. The contract involves Pre & Post Tamping Track Measurements using a Portable Track Geometry Measurement Trolley System (Gedo Survey) for Design Mode Tamping on all lines in the MSB-VM Section. This new order is expected to positively impact the business operations of the company.

The disclosure was made to BSE Limited on June 01, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirms that the transaction does not fall within related party transactions and that the promoter group has no interest in the work contract. The consideration for the project will be made in cash.

The entire scope of work is scheduled to be completed within 10 months from the date of the Letter of Acceptance. The project is domestic in nature and is subject to necessary approvals from governmental authorities. The company has stated that this development is significant for its operations.