Lloyds Engineering Works Limited has agreed to acquire an 88.12% stake in Steel Infra Solutions Company Limited (SISCOL) for a total consideration of approximately ₹1,073.40 crore. The transaction, approved by the Board on June 18, 2026, aims to create one of India's most integrated engineering, structural fabrication, and EPC platforms. The acquisition is expected to be completed by July 31, 2026, subject to shareholder and regulatory approvals, positioning the combined entity to target annual revenue exceeding ₹10,000 crore by FY29/30.

Deal Structure and Consideration

The acquisition involves the purchase of 3,57,80,117 equity shares, representing 88.12% of the total outstanding equity share capital of SISCOL. The consideration is structured through a combination of cash and share swap mechanisms involving Lloyds Engineering Works Limited, its holding company Lloyds Enterprises Limited, and Streamland Estate LLP.

As part of the non-cash consideration, Lloyds Engineering Works Limited will issue 7,06,74,554 equity shares at a price of ₹71.25 per share to the sellers of SISCOL. Additionally, the Board approved raising additional capital through the preferential allotment of 7,00,000 equity shares to non-promoters at ₹71.25 per share.

Strategic Rationale and Impact

The acquisition is designed to build a diversified, multi-disciplinary engineering platform. SISCOL's heavy steel fabrication and infrastructure solutions business complements Lloyds Engineering's existing portfolio of heavy mechanical, hydraulic, structural, and process equipment. The combined entity expects to generate operating synergies through the consolidation of procurement, shared engineering resources, and optimisation of manufacturing capacity.

SISCOL has executed 187 structural steel projects across 22 states since 2018, including landmarks such as Delhi Airport Terminal 1, Noida International Airport, and the Dwarka Convention Centre. The company maintains relationships with leading EPC and infrastructure companies, including L&T, Shapoorji Pallonji, Tata Projects, and Adani Group companies.

Post-transaction, the combined platform will possess a structural fabrication capacity of approximately 150,000 MTPA, with a roadmap to expand to approximately 200,000 MTPA. SISCOL will continue to operate under its existing brand and leadership, with Ravi Uppal continuing as Chairman and Managing Director. The company also intends to file a Draft Red Herring Prospectus for the listing of SISCOL within 30 months of the transaction's completion.

Financial Profile of SISCOL

SISCOL is engaged in heavy steel fabrication and infrastructure solutions, with a production capacity of 100,000 MT per annum across six manufacturing facilities. For FY26, the company reported operating revenues of approximately ₹817 crore, EBITDA of approximately ₹92 crore, and a net profit of approximately ₹44 crore. It holds an order book of approximately ₹1,134 crore.

Other Board Approvals

The Board also approved borrowing up to ₹1,000 crore from banks and financial institutions and an investment of up to ₹2.5 crore in Lloyds Advance Defence Systems Limited. An Extraordinary General Meeting is scheduled for July 15, 2026, to seek shareholder approval for the acquisition and capital issuance.

Lloyds Engineering Works has scheduled a board meeting for June 18, 2026, to consider the issuance of equity shares on a preferential basis. The company intends to seek approval for the allotment in accordance with the Companies Act, 2013, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The proposed issuance is subject to necessary regulatory and statutory approvals, as well as the consent of the shareholders.

The meeting will be held pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In addition to the preferential allotment, the board will consider any other matters with the permission of the chair.

Consequently, the trading window for designated persons and their relatives has been closed from June 15, 2026. This restriction will remain in effect until 48 hours after the announcement regarding the board meeting is made available to the public on June 18, 2026. The closure is in line with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, and the company's internal Code of Conduct.

Key Meeting Details

The preferential allotment requires the approval of shareholders, indicating a potential change in the company's equity structure. The board's decision will be contingent upon compliance with the applicable legal and regulatory framework.