Lloyds Engineering Works Ltd board approves Rights Issue to power Strategic Expansion and Long-Term Growth

The Board of Directors of Lloyds Engineering Works Limited (LEWL), a significant engineering solutions provider, has approved the raising of capital through a Rights Issue of equity shares in its Meeting held on July 30, 2024 and the terms of the said Right Issue in its meeting held on April 17, 2025. This decision reflects the Company's commitment to strengthening its financial foundation and accelerating its long-term strategic roadmap.

The total size of the Rights Issue is approximately ₹987.26 crore, comprising of 30,85,17,476 equity shares on a partly paid basis. This will increase the paid-up share capital of the Company by 20.93% on post Rights Issue Paid-Up share capital basis.

Rights Issue Schedule

The Rights Equity Shares are priced at ₹32 each, with ₹16 payable on application and the balance to be paid in one or more calls on or before March 31, 2026.

Record Date: Monday, April 28, 2025 - for determining the eligibility of shareholders entitled to receive Rights Entitlements.

Rights Entitlement Ratio (9:34): 9 Rights Equity Shares for every 34 fully paid-up equity shares held by eligible equity shareholders as on the Record Date.

Rights Issue Opening Date: Thursday, May 15, 2025

Rights Issue Closing Date: Friday, May 30, 2025

The Rights Issue is a significant milestone in LEWL's journey toward unlocking new dimensions of growth. The capital raised through this initiative will be utilised across broad strategic themes that reflect the Company's long-term objectives:

Upgrading and refurbishing existing manufacturing facilities at Murbad, Thane to improve productivity, operational efficiency and long-term structural resilience.

Funding the acquisition, refurbishment & overhauling of engineering assets of Bhilai Engineering Corporation Limited (BECL) to seamlessly integrate and scale up production capabilities across critical engineering verticals.

Augmenting the capabilities of Techno Industries Pvt Ltd-acquired by LEWL in FY25-to catalyse growth in high-potential elevator and materials movement segment;

Augmenting working capital to support the Company's rapidly expanding order book at all the locations, including Techno Industries and empower timely execution of larger, more complex turnkey engineering products and projects.

Additionally, part of the funds is for general corporate purposes, to be utilised for multiple avenues of growth, which the Company pursues on an ongoing basis.

All utilisation of funds will be monitored by India Ratings, monitoring agency appointed by the Board of Directors in accordance with the SEBI (ICDR) Regulations, 2018.

These strategic applications of funds are intended to propel LEWL into its next phase of accelerated performance and stakeholder value creation.

Strategic Growth Levers Set in Motion

FY25 has been a breakthrough year for LEWL, with several high-impact strategic initiatives already underway:

Technological Collaborations:

- Tie-up with The Material Works Ltd (USA) to bring EPS Gen 4 Eco Pickling technology to India-a revolutionary, acid-free solution that reduces capex, opex and environmental footprint.

- Partnership with TB Global Technologies Ltd (Japan) for marine loading arms and swivel joints, focusing on port-based infrastructure and fluid transfer systems.

- Strategic alliance with Fincantieri S.p.a. (Italy) to co-develop advanced products for the Indian Navy and Coast Guard, expanding into defence, aerospace and telecomintegrated engineering systems.

Strategic Acquisitions:

- Acquisition of the engineering division of Bhilai Engineering Corporation Ltd (BECL) to enhance fabrication, machining and assembly capabilities, doubling LEWL's production area.

- Acquired 77% stake in Techno Industries Pvt Ltd marking LEWL's entry into electrical engineering and expanding its offerings in motors, pumps, elevators, escalators and AMC services.

- Acquired Land of 63 Acres near Nagpur for future organic expansion.

Shares of Lloyds Engineering Works Limited was last trading in BSE at Rs. 61.94 as compared to the previous close of Rs. 61.56. The total number of shares traded during the day was 550674 in over 2939 trades.

The stock hit an intraday high of Rs. 62.49 and intraday low of 61.18. The net turnover during the day was Rs. 34041259.00.

Source : Equity Bulls

Keywords

LloydsEngineeringWorks INE093R01011 FundRaising RightsIssue RecordDate