Lloyds Enterprises Limited has increased its investment in Lloyds Engineering Works Limited (formerly known as Lloyds Steels Industries Limited) by acquiring an additional 3.72 crore partly paid-up equity shares through a rights issue. The allotment of these shares was made on June 5, 2025, with the company receiving the allotment advice on June 10, 2025. This transaction was disclosed to the stock exchanges on June 12, 2025.
Following this acquisition, Lloyds Enterprises' total holding in Lloyds Engineering Works stands at over 49 crore equity shares, translating to 33.30% of the target company's total diluted share capital. The acquired partly paid-up shares have a face value of Re. 1 each, with Re. 0.50 paid-up per share.
| Particulars | Details |
|---|---|
| Name of Acquirer | Lloyds Enterprises Limited |
| Name of Target Company (TC) | Lloyds Engineering Works Limited (formerly known as Lloyds Steels Industries Limited) |
| Acquirer belongs to Promoter/Promoter group | Yes |
| Number of Shares Acquired | 3,71,68,120 Equity Shares |
| Type of Shares Acquired | Partly Paid-up (Re. 0.50 paid on Face Value of Re. 1) |
| Mode of Acquisition | Rights Issue |
| Date of Allotment of Shares | June 5, 2025 |
| Date of Receipt of Intimation of Allotment | June 10, 2025 |
| Acquired Shares as % of TC's Total Diluted Share/Voting Capital | 5.62% |
| Acquirer's Holding in TC (Number of Shares) - Before Acquisition | 45,36,12,901 fully paid-up shares |
| Acquirer's Holding in TC (%) - Before Acquisition | 38.92% of pre-issue total share/voting capital |
| Acquirer's Holding in TC (Number of Shares) - After Acquisition | 49,07,81,021 shares (45,36,12,901 fully paid-up + 3,71,68,120 partly paid-up) |
| Acquirer's Holding in TC (%) - After Acquisition | 33.30% of post-issue total diluted share/voting capital |
Detailed Analysis of the Acquisition
The recent acquisition by Lloyds Enterprises Limited, a promoter group entity of Lloyds Engineering Works Limited, signifies a further consolidation of its interest in the engineering firm. The transaction involved subscribing to 3,71,68,120 partly paid-up equity shares issued under a rights issue by Lloyds Engineering Works. These shares have a face value of Re. 1 each, with Re. 0.50 per share paid up at the time of allotment. The balance amount will be due as and when called by the company.
Impact on Shareholding Structure
Prior to this acquisition, Lloyds Enterprises Limited held 45,36,12,901 fully paid-up equity shares in Lloyds Engineering Works, which constituted 38.92% of the target company's total share capital at that time. The pre-issue share capital of Lloyds Engineering Works was Rs. 1,16,55,10,466, representing 1,16,55,10,466 equity shares of Re. 1 each.
With the acquisition of 3,71,68,120 partly paid-up shares, Lloyds Enterprises' total holding has increased to 49,07,81,021 shares. This revised holding comprises 45,36,12,901 fully paid-up shares and the newly acquired 3,71,68,120 partly paid-up shares. As per the disclosure, this combined holding now represents 33.30% of the total diluted share/voting capital of Lloyds Engineering Works Limited post the rights issue. The calculation for this percentage considers the acquirer's total shares (both fully and partly paid-up) divided by the enhanced total share capital of Lloyds Engineering Works, which stands at 147,40,27,942 shares (assuming full conversion of all partly paid-up shares issued in the rights issue).
Interestingly, despite acquiring additional shares, Lloyds Enterprises' overall percentage stake in Lloyds Engineering Works has decreased from 38.92% to 33.30%. This typically occurs when a rights issue significantly expands the company's equity base, and an existing major shareholder either does not subscribe to their full entitlement or the issue size leads to a broader distribution of shares, thereby diluting previous percentage holdings.
Capital Restructuring of Lloyds Engineering Works
The rights issue has led to a change in the capital structure of Lloyds Engineering Works Limited. Post-issue, the company's equity share capital comprises 1,16,55,10,466 fully paid-up equity shares of Re. 1 each, along with a new tranche of 30,85,17,476 partly paid-up equity shares (Re. 0.50 paid on a face value of Re. 1 each). This brings the total number of issued equity shares (both fully and partly paid-up) to 147,40,27,942. The total diluted share/voting capital, assuming full conversion of these partly paid-up shares, is also considered as 147,40,27,942 shares for calculating post-issue shareholding percentages.
The 3,71,68,120 partly paid-up shares acquired by Lloyds Enterprises Limited represent 5.62% of this new total diluted share capital of Lloyds Engineering Works. The company's disclosure remark clarifies that these acquired shares represent this percentage "assuming partly Paid-up shares capital would be fully converted into fully paid-up capital without any forfeiture."
Additional Disclosures and Context
This corporate action was formally communicated under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The regulation mandates disclosures by acquirers when their shareholding in a listed company changes beyond specified thresholds.
The timeline of the event indicates a swift process, with the allotment of shares occurring on June 5, 2025, the acquirer receiving intimation on June 10, 2025, and the public disclosure being made on June 12, 2025.
Furthermore, the disclosure document also includes a remark stating that 8,90,00,000 equity shares of Lloyds Engineering Works Limited held by Lloyds Enterprises Limited are pledged with Tata Capital Limited. This appears to be an existing pledge and is provided as part of the comprehensive shareholding disclosure.
Market Implications and Outlook
The acquisition of shares by a promoter group entity like Lloyds Enterprises is often viewed by the market as a sign of confidence in the future prospects and intrinsic value of the target company, Lloyds Engineering Works. The funds raised through the broader rights issue (of which this acquisition is a part) are typically utilized for purposes such as expansion, debt reduction, or working capital, which can positively impact the company's long-term growth.
However, the decrease in the promoter entity's percentage holding, despite the additional share purchase, suggests a significant expansion of the equity base. Shareholders and potential investors will be watching how Lloyds Engineering Works utilizes the proceeds from the rights issue and how the new capital structure, including the partly paid-up shares, influences its financial performance and market valuation. The existence of partly paid-up shares also implies potential future calls for the remaining amount, which would lead to further capital infusion and eventual conversion into fully paid-up shares.
The stock exchanges where Lloyds Engineering Works Limited's shares are listed include BSE Limited (Scrip Code: 512463) and the National Stock Exchange of India Limited (NSE Symbol: LLOYDSENT – Note: This symbol appears to be for Lloyds Enterprises in the letterhead, the target company's symbol for Lloyds Engineering Works Limited was not explicitly stated in the body of the disclosure but is generally LLOYDSENGG. The letterhead for Lloyds Enterprises uses LLOYDSENT for itself).
