Lloyds Engineering Works Ltd Board Approves Variation in Objects of Rights Issue
Lloyds Engineering Works Ltd's Board of Directors has approved a variation in the objects of its rights issue originally outlined in the letter of offer dated April 19, 2025, subject to member approval via postal ballot. As on June 30, 2026, Rs. 660.52 Crore of the gross proceeds of Rs. 987.25 Crore has been utilised, with Rs. 326.73 Crore remaining unutilised. The revised plan allocates the entire unutilised balance of Rs. 326.73 Crore for deployment between July 1, 2026 and March 31, 2027 across select objects including asset acquisition, working capital, and general corporate purposes.
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The Board of Directors of Lloyds Engineering Works Ltd has approved a variation in the objects of its rights issue, as originally disclosed in the letter of offer dated April 19, 2025. The decision was made based on recommendations received from the Audit Committee and remains subject to approval by members through a postal ballot, as well as clearance from appropriate regulatory authorities. The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Utilisation Status as on June 30, 2026
As on June 30, 2026, an aggregate amount of Rs. 660.52 Crore has been utilised towards the objects of the issue out of gross proceeds of Rs. 987.25 Crore. An amount of Rs. 326.73 Crore remains unutilised, which is also the revised balance to be utilised from July 1, 2026 to March 31, 2027.
The detailed breakup of utilisation across individual objects for Lloyds Engineering Works Limited and its associate Techno Industries Private Limited is presented below:
(Rs. in Crore)
| Particulars: | Amount as per Letter of Offer | Amount Utilised Upto June 30, 2026 | Balance Unutilised as on June 30, 2026 | Revised Balance to be Utilised (July 1, 2026 – March 31, 2027) |
|---|---|---|---|---|
| For Lloyds Engineering Works Limited | ||||
| Capital expenditure – Industrial Shed repair/restoration at Murbad, Thane, Maharashtra | 39.06 | 30.47 | 8.59 | Nil |
| Acquisition of engineering assets of Bhilai Engineering Corporation Limited & overhauling/refurbishment of machineries | 134.00 | 3.75 | 130.25 | 71.25 |
| Working capital requirements | 336.53 | 336.53 | Nil | 86.59 |
| Investment in equity shares of Techno Industries Private Limited (second tranche) | 25.00 | 25.00 | Nil | Nil |
| Unidentified acquisition and General Corporate Purposes | 344.31 | 175.42 | 168.89 | 168.89 |
| For Techno Industries Private Limited | ||||
| Acquisition of leasehold rights of land and shed at Plot No. 5002, Phase IV, GIDC, Vatva, Ahmedabad, Gujarat | 20.00 | 20.00 | Nil | Nil |
| Capital expenditure – purchase of machineries at Plot No. 5002 and Plot No. 505, Phase IV, GIDC, Vatva, Ahmedabad | 32.97 | 21.20 | 11.77 | Nil |
| Working capital requirements | 33.40 | 33.40 | Nil | Nil |
| Issue Related Expenses | 21.98 | 14.75 | 7.23 | Nil |
| Gross Proceeds from the Issue | 987.25 | 660.52 | 326.73 | 326.73 |
Key Highlights of the Variation
The variation in the objects of the rights issue reflects a reallocation of the remaining unutilised funds across select categories. Notable aspects of the revised utilisation plan include:
- Rs. 71.25 Crore is earmarked for the acquisition and refurbishment of engineering assets of Bhilai Engineering Corporation Limited, against an original allocation of Rs. 134.00 Crore for this object.
- Rs. 86.59 Crore has been allocated towards working capital requirements of Lloyds Engineering Works Limited, despite the original allocation of Rs. 336.53 Crore having been fully utilised.
- Rs. 168.89 Crore remains allocated towards unidentified acquisitions and General Corporate Purposes, unchanged from the balance unutilised figure.
- Several objects — including the Techno Industries capital expenditure, working capital, leasehold acquisition, and issue-related expenses — show a nil revised balance, indicating full utilisation or reallocation.
Regulatory Compliance and Disclosure
The intimation was filed on August 6, 2026, in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI Master Circular dated January 30, 2026. The disclosure was signed by Rahima Shaikh, Company Secretary and Compliance Officer. The variation in objects remains conditional upon member approval via postal ballot and clearance from appropriate authorities before it takes effect.
Historical Stock Returns for Lloyds Engineering Works
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.17% | -1.70% | -2.12% | +67.92% | +26.48% | +3,048.04% |
What specific strategic rationale drives the reallocation of Rs. 86.59 Crore to working capital after the original allocation was fully exhausted?
How might the partial utilization of the Bhilai Engineering Corporation acquisition funds impact the timeline and integration of this strategic asset?
What are the potential market implications of retaining Rs. 168.89 Crore for 'unidentified acquisitions' and general corporate purposes?
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