Lloyds Steels Industries Limited board approves preferential allotment, capacity expansion

The Board of Directors of Lloyds Steels Industries Limited in the meeting held today i.e. Thursday, 14th October 2021 have considered and approved, subject to approval of the members in the Extra Ordinary General Meeting and appropriate authorities, the Board has approved the increase in the authorized share capital of the Company from Rs. 90,00,00,000/- divided into 90,00,00,000 equity shares of Re. 1 each to Rs. 110,00,00,000/- divided into 110,00,00,000 equity shares of Re. 1 each and consequent alteration in Capital Clause V of the Memorandum of Association of the Company relating to share capital of the Company.

Subject to the approval of the members in the Extra Ordinary General Meeting and appropriate authorities, the Board has decided to issue and allot by way of Preferential Allotment up to 16,50,00,000 Convertible Warrants of Re. 1/- each at an issue price of Rs.3.86 each (including premium of Rs.2.86 each) , aggregating to Rs.63,69,00,000/- to persons belonging to Promoters / Promoter Group on Preferential Allotment basis.

Also, the Board took note of Major Capacity Expansion to supplement its Manufacturing Facilities at Murbad works on a plot of land of 8085 Sq. Mtr owned by the Company. A Modern facility will be set up with heavy lifting capability to meet the critical demand for critical equipments for various industries. This facility will consist of automated equipment for Welding, Plate Cutting Forming & Machining critical components. This will help in lowering / reducing costs and carrying out larger jobs which will substantially improve profitability and turnover for the company. The Shop Layout and workflow has been planned meticulously to eliminate any waiting time and increase capacity by 40%. The plant is expected to be operational by second quarter of next financial year. The total cost is expected to be within Rs.25 Crs & will be funded internally.

Shares of Lloyds Steels Industries Limited was last trading in BSE at Rs. 4.73 as compared to the previous close of Rs. 4.97. The total number of shares traded during the day was 8062625 in over 4846 trades.

The stock hit an intraday high of Rs. 5.21 and intraday low of 4.73. The net turnover during the day was Rs. 40683932.00.

Source : Equity Bulls

Keywords

LloydsSteelsIndustries INE093R01011 IndustrialMachinery PreferentialIssue Expansion