Lloyds Engineering Works Limited announced a proposed investment of ₹100,00,00,020 to acquire equity shares in its subsidiary, Steel Infra Solutions Company Limited (SISCOL). The funds will be invested via a preferential private placement, subscribing to up to 3,33,33,334 equity shares at ₹30 per share. This move aims to support SISCOL’s liquidity and operations.
Lloyds Engineering Works Proposes Significant Investment in Subsidiary
Lloyds Engineering Works Limited has disclosed plans to invest approximately ₹100,00,00,020 (Rupees One Hundred Crore and Twenty Rupees Only) into its subsidiary, Steel Infra Solutions Company Limited (SISCOL). This strategic infusion of capital is intended to enhance SISCOL’s liquidity and operational capabilities.
Details of the Proposed Acquisition
The investment will be made through a preferential private placement, where Lloyds Engineering Works will subscribe to up to 3,33,33,334 equity shares of SISCOL. Each share will be issued at a price of ₹30, representing a total value of ₹100,00,00,020. The acquisition is planned to occur in two tranches:
- Stage 1: An initial payment of ₹50,00,00,010 at the time of subscription and allotment.
- Stage 2: The remaining ₹50,00,00,010 will be payable on mutually decided dates through calls on partly paid-up equity shares.
About Steel Infra Solutions Company Limited (SISCOL)
SISCOL is a wholly-owned subsidiary of Lloyds Engineering Works Limited, specializing in heavy steel fabrication and infrastructure solutions. The company serves clients across the energy, infrastructure, and industrial sectors, offering end-to-end services in design, engineering, fabrication, installation, and project management. SISCOL operates six production facilities and has contributed to significant projects like Terminal 1 at Delhi Airport.
Financial Highlights of SISCOL (FY2025-26)
For the financial year 2025-26, SISCOL reported a turnover of ₹816.87 Crores and a net profit of ₹43.42 Crores. The target company has an authorized share capital of ₹65,00,00,000, divided into 65,00,00,000 equity shares of face value Re. 1 each.
The transaction is being conducted on an arm’s length basis, with an independent valuation report guiding the share subscription. This capital infusion is expected to significantly support SISCOL’s liquidity position and ensure smooth operations, contributing to the overall expansion of Lloyds Engineering Works’ business activities.
Source: BSE
