Lloyds Engineering Works Limited has approved a corporate guarantee of ₹130 crore to support credit facilities for its associate company, Lloyds Infrastructure & Construction Limited. The decision was taken by the Board of Directors during a meeting held on August 6, 2026, marking a strategic move to facilitate financing for the associate’s operations without direct equity infusion.

The approval was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also cited compliance with SEBI Master Circular SEBI HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. This regulatory framework mandates detailed disclosure for such guarantees to ensure transparency for shareholders regarding off-balance-sheet exposures.

According to the filing, the guarantee covers credit facilities not exceeding ₹130 crore. The transaction is structured as an arm’s length deal, with the company explicitly stating that neither the promoter nor the promoter group nor any group companies hold any interest in this specific transaction. This separation ensures that the guarantee is driven by operational necessity rather than related-party considerations.

The financial impact of this guarantee on Lloyds Engineering Works Limited is assessed as nil. This suggests that the exposure is considered manageable within the company’s existing risk parameters or that adequate counter-guarantees or collateral structures are in place, though specific terms of the underlying credit facility were not detailed in the public announcement.

Transaction Details

What the Numbers Show

The issuance of a ₹130 crore corporate guarantee highlights the interconnected nature of the Lloyds group’s engineering and infrastructure arms. By providing this support, Lloyds Engineering Works enables its associate to secure necessary funding, likely for project execution or working capital needs, without directly assuming the debt on its own balance sheet. The explicit confirmation of no promoter interest and nil impact reinforces the transaction’s commercial rationale and risk containment.

Lloyds Engineering Works has scheduled its 32nd Annual General Meeting (AGM) for August 21, 2026, at 11:30 a.m. The meeting will be conducted exclusively through Video Conferencing ('VC') or Other Audio Visual Means ('OAVM'), allowing shareholders to participate remotely without the need for physical presence. This arrangement ensures broader accessibility for investors while adhering to statutory compliance under Section 108 of the Companies Act, 2013.

The company published a newspaper advertisement in Business Standard (English) and Mumbai Lakshadeep (Marathi) editions to disclose these details publicly. This disclosure was made pursuant to Regulation 30 and Regulation 47 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice also provides information regarding e-Voting procedures, book closure dates, and the record date for determining shareholder eligibility.

Meeting Details and Compliance

The AGM is being organized in strict adherence to Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended. Shareholders are advised to review the accompanying information on e-Voting to ensure they can exercise their voting rights effectively during the virtual session. The company emphasized that all procedural aspects of the meeting have been designed to maintain transparency and ease of participation for all stakeholders.

Accessing Information

Shareholders can access the full text of the newspaper publication and related documents on the company’s official website at www.lloydsengg.in . The management has requested stock exchanges, including BSE Limited and the National Stock Exchange of India Limited, to take this information on record. The filing was signed by Rahima Shaikh, Company Secretary & Compliance Officer, on August 1, 2026, confirming the validity of the disclosures made to the exchanges.