Lloyds Engineering Works has acquired a controlling 51.13% stake in Steel Infra Solutions Company Limited (SISCOL) for a total consideration of ₹626.39 crore. The acquisition was consummated on August 17, 2026, following a Share Purchase, Share Subscription and Shareholders' Agreement dated June 18, 2026. This move aligns with the company’s strategy to build a diversified, multi-disciplinary engineering platform by integrating SISCOL’s heavy steel fabrication capabilities with its existing portfolio of mechanical and hydraulic equipment.

The transaction structure involved both cash and non-cash considerations. Lloyds Engineering paid ₹127.34 crore in cash for 10.39% of SISCOL’s equity shares. The remaining 40.74% stake was acquired through a share swap, involving the preferential allotment of 7,00,42,458 equity shares at ₹71.25 per share, valued at up to ₹499.05 crore. Concurrently, Lloyds Enterprises Limited and Streamland Estate LLP each acquired a 17.88% stake in SISCOL for ₹219.00 crore in cash each, bringing the total consolidated group holding to 86.89%.

Financial Profile of Target Entity

SISCOL operates in the heavy steel fabrication and infrastructure solutions space, serving customers across energy, infrastructure, and industrial segments. The target company has demonstrated consistent revenue growth over the past three fiscal years. Its authorized share capital stands at ₹65.00 crore, while the total issued, paid-up, and subscribed share capital is ₹40.83 crore.

In FY26, SISCOL reported a net profit of ₹43.42 crore on its turnover of ₹816.87 crore. The company operates six production facilities, including a newly operational unit in Hyderabad, bringing its total production capacity to 100,000 metric tonnes per annum. Its project portfolio includes landmark developments such as Terminal 1 at Delhi Airport, ITPL Bangalore, and the Noida International Airport.

Strategic Rationale and Future Plans

The acquisition is expected to generate operating synergies through consolidated procurement, shared engineering resources, and optimized manufacturing capacity utilization. By combining process equipment expertise with structural fabrication, the combined entity aims to bid for larger, integrated turnkey or EPC projects.

What the Numbers Show

The valuation implies a significant premium on SISCOL’s recent earnings. With a FY26 net profit of ₹43.42 crore, the total enterprise value implied by the ₹626.39 crore consideration for a 51.13% stake suggests an equity value of approximately ₹1,225.00 crore for the entire company. This translates to an implied price-to-earnings multiple of roughly 28x based on FY26 standalone profits, reflecting the strategic value placed on SISCOL’s capacity expansion and order book potential rather than just current profitability.

Lloyds Engineering plans to file a Draft Red Herring Prospectus for the listing of SISCOL within 30 months from the completion of this transaction stage. This future listing is intended to provide independent price discovery for the SISCOL business and contribute to value creation for shareholders. The acquisition does not constitute a related-party transaction and has received all necessary regulatory approvals.

Lloyds Engineering Works material subsidiary Lloyds Advance Defence Systems Limited (LADS) has entered into an agreement with Alpar Ingegneria S.R.L., an Italian firm specialising in the design, development, and manufacture of advanced systems. The agreement, disclosed on August 17, 2026, outlines a strategic partnership focused on technology acquisition and local manufacturing capabilities.

The collaboration aims to enhance LADS' product portfolio through the design and development of product prototypes. Alpar will supply these prototypes to LADS as part of the initial phase of the engagement. This move aligns with broader industry trends towards indigenisation and technology localisation in the defence and capital goods sectors.

Key terms of the agreement

The agreement encompasses three primary components designed to facilitate knowledge transfer and operational integration:

• Design, development, and manufacture of product prototypes, with supply to LADS.
• Transfer of Technology (TOT) to LADS, enabling indigenous capability building.
• Licensed manufacturing of the products within India.

Regulatory disclosures

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirms that there is no shareholding interest between the parties, nor are they related to the promoter or promoter group in any manner. Consequently, the transaction does not fall under related party transactions.

No special rights, such as the appointment of directors or pre-emptive rights on share subscriptions, were mentioned in the significant terms of the agreement. The filing also noted that no additional details regarding termination or amendments were required at this stage.