Lloyds Engineering Works Limited disclosed on July 28, 2026, that its subsidiary, Lloyds Advance Defence Systems Limited (LADS), has entered into a formal agreement with Flyfocus SP. Z.O.O., a Polish company specializing in the design and development of Unmanned Aerial Systems (UAS). The partnership enables LADS to undertake the licensed manufacturing, marketing, and supply of Flyfocus’s UAS products within India, marking a significant expansion into advanced aerial defence technology. Additionally, the agreement includes a component for joint research and development of new defence products, signaling a long-term strategic collaboration beyond immediate production capabilities.

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

Agreement Highlights

The key parameters of the deal between Lloyds Advance Defence Systems Limited and Flyfocus SP. Z.O.O. are outlined below:

Strategic Defence Partnership

The agreement positions LADS as a licensed manufacturer and supplier of UAS products in India, leveraging technology and expertise from its Polish partner, Flyfocus SP. Z.O.O. The inclusion of collaborative R&D on new defence items further broadens the scope of the partnership, pointing to a longer-term technology development relationship between the two entities. This development reflects the subsidiary's intent to strengthen its footprint in India's growing defence manufacturing landscape, particularly in the unmanned aerial systems segment, which has seen increasing strategic importance in modern defence operations. The absence of special rights such as director appointments or capital structure restrictions indicates a standard commercial licensing arrangement focused on operational execution and innovation.

Lloyds Engineering Works Limited secured shareholder approval for the preferential allotment of equity shares to acquire a controlling stake in Steel Infra Solutions Company Limited. The Extraordinary General Meeting (EGM), held on July 15, 2026, saw the passing of two special resolutions regarding the issuance of shares for both cash and non-cash consideration. The approvals enable the company to proceed with the issuance of 7,13,74,554 equity shares, comprising 7,06,74,554 shares for consideration other than cash and 7,00,000 shares for cash consideration.

The preferential allotment of 7,00,000 equity shares to non-promoters will be made at an issue price of ₹71.25 per share, aggregating to ₹4,98,75,000. Proceeds from this cash component are intended to subscribe to fresh equity shares in Steel Infra Solutions Company Limited. The company stated that funds will be utilized within the time limit specified in the Share Purchase and Shareholders Agreement, specifically on or before the Long Stop Date of March 31, 2027. Pending utilization, the funds will be parked in fixed deposits, liquid mutual funds, or other permitted instruments.

The resolutions were passed with strong support from shareholders. The resolution for the acquisition of a controlling stake via share swap received 99.7867% votes in favour, while the resolution for the preferential issue for cash consideration secured 99.7872% votes in favour. The remote e-voting facility was available from July 10, 2026, to July 14, 2026, with e-voting also conducted during the meeting.

The company confirmed that the proceedings comply with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the provisions of the Companies Act, 2013. Mr. Harshvardhan Tarkas, Practicing Company Secretary, served as the Scrutinizer for the voting process.