Lloyds Metals & Energy has initiated a postal ballot process seeking member approval for two special resolutions: the appointment of Avijit Ghosh as an Independent Director and the conversion of outstanding loans into equity shares. The voting period commenced on September 25, 2026, and will conclude on October 24, 2026.

The first resolution seeks ratification of Avijit Ghosh’s appointment as a Non-Executive, Independent Director for a five-year term ending August 9, 2031. Ghosh, who holds a B.Tech in Mining Engineering from IIT (ISM), Dhanbad, brings over four decades of experience in mining and heavy engineering. He previously served as Chairman and Managing Director of Heavy Engineering Corporation Limited and Director (Mining) at Hindustan Copper Limited. His expertise is expected to strengthen the board’s oversight of mine development and project execution.

Loan Conversion Mechanism

The second resolution grants the Board authority to convert outstanding loans from banks and financial institutions into fully paid-up equity shares. This conversion option, exercisable at the lenders' discretion upon default or as per financing documents, complies with Section 62(3) of the Companies Act, 2013. No shares are being issued immediately; the approval enables future conversion if triggered by contractual terms.

Voting Details

Members holding shares as of the cut-off date, September 18, 2026, are eligible to vote via remote e-voting through NSDL. The EVEN number for this event is 143181. Physical copies of the notice will not be dispatched; all communications are electronic. Results will be declared within two working days after the voting period closes.

What the Numbers Show

The dual nature of the resolutions highlights a strategic focus on both governance and capital structure flexibility. While the appointment of an industry veteran like Ghosh addresses operational expertise needs, the pre-emptive approval for loan-to-equity conversion signals preparedness for potential debt restructuring scenarios. This mechanism allows the company to manage liquidity pressures without immediate dilution, preserving cash flow while offering lenders a path to equity participation if repayment challenges arise.

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.

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.