Lloyds Metals approves ₹1,550 cr NCDs, ESOP allotment and DRI expansion
- Board approves ₹1,550 crore NCD issuance via private placement in two tranches
- Allots 1,41,969 equity shares under ESOP-2017 at ₹4 per share
- Increases total DRI capacity to over 9,00,000 MTPA through plant enhancements
- Ghugus plant capacity rises to 8,15,000 MTPA; Konsari to 92,400 MTPA
- Expansion funded by internal accruals with ₹190 crore total investment
*this image is generated using AI for illustrative purposes only.
Lloyds Metals & Energy board approved a ₹1,550 crore non-convertible debenture (NCD) issuance on a private placement basis. The meeting also sanctioned an employee stock option plan allotment and a significant expansion in direct reduced iron capacity.
Key corporate decisions
The board's approvals cover three significant developments: a major debt fundraise through NCDs, an equity allotment under the ESOP scheme, and a substantial capacity expansion in DRI production. The following table summarises the key details disclosed.
| Parameter | Details |
|---|---|
| NCD issuance size | ₹1,550 crore (₹600 cr + ₹950 cr) |
| NCD basis | Private placement |
| ESOP allotment | 1,41,969 equity shares at ₹4 per share |
| Planned DRI capacity | Over 9,00,000 MTPA |
NCD issuance
The board approved the issuance of two separate non-convertible debentures aggregating up to ₹600 crore and ₹950 crore respectively, on a private placement basis. This brings the total debt fundraise to ₹1,550 crore. The issuance is subject to applicable regulatory approvals and falls within the overall limits previously approved by the board in May 2026 and October 2025.
ESOP allotment
The company approved the allotment of 1,41,969 equity shares under the Lloyds Metals and Energy Limited Employee Stock Option Plan – 2017. The shares were allotted to the Lloyds Employees Welfare Trust at an exercise price of ₹4 per share, which includes a premium of ₹3 per share. Following this allotment, the issued and paid-up equity share capital stands increased to ₹56,30,48,920.
DRI capacity expansion plans
The board approved enhancing the capacity of its DRI plants at Ghugus and Konsari. The Ghugus plant capacity will increase from 6,30,000 MTPA to 8,15,000 MTPA, while the Konsari plant will rise from 70,000 MTPA to 92,400 MTPA. This enhancement will push the total DRI capacity to over 9,00,000 MTPA. The expansion, funded by internal accruals with an investment of ₹140 crore for Ghugus and ₹50 crore for Konsari, aims to improve operational efficiency and utilization of existing kiln facilities.
Historical Stock Returns for Lloyds Metals & Energy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.11% | +1.39% | -5.88% | +46.32% | +36.83% | +223.91% |
How will the ₹1,550 crore NCD issuance impact Lloyds Metals' debt-to-equity ratio and future borrowing capacity?
What is the expected timeline for the DRI capacity expansion at Ghugus and Konsari, and when will these plants reach full operational utilization?
How does the planned increase in DRI production align with current steel demand forecasts and raw material availability in India?
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