Lloyds Enterprises Limited has created a pledge over 6 crore equity shares of Lloyds Engineering Works , representing 4.05% of the target company’s total share capital. The pledge was executed in favour of Tata Capital Limited on August 13, 2026, as security for a loan facility.

The promoter entity entered into loan agreements with Tata Capital to avail financial assistance of ₹219 crore. This transaction increases the proportion of Lloyds Enterprises’ holdings that are encumbered, reflecting a shift in the capital structure of the promoter group.

Pledge Details

The disclosure filed under Regulation 31 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, outlines the specifics of the encumbrance:

Promoter Holding Status

Lloyds Enterprises Limited holds a total of 48,33,26,722 shares in Lloyds Engineering Works, constituting 32.65% of the total share capital and 32.31% of the diluted share capital. Prior to this transaction, 6,60,00,000 shares (4.46%) were already encumbered.

Following the new pledge, the total number of encumbered shares held by Lloyds Enterprises rises to 12,60,00,000, which accounts for 8.51% of the total share capital of Lloyds Engineering Works. The remaining unencumbered promoter holding stands at 24.14%.

Other promoters, including Ravi Agarwal, Mukesh Rajnarayan Gupta, Renu Rajesh Gupta, Abha Gupta, Rajesh Rajnarayan Gupta, Lloyds Metals and Minerals Trading LLP, and Aeon Trading LLP, reported no changes in their encumbrance status during this period.

Lloyds Engineering Works acquired a controlling 51.13% stake in Steel Infra Solutions Company Limited (SISCOL) for a total consideration of ₹626.39 crore. The acquisition was completed on August 17, 2026, following a Share Purchase, Share Subscription and Shareholders' Agreement dated June 18, 2026. This move aligns with the company's strategy to build a diversified, multi-disciplinary engineering platform by integrating SISCOL's heavy steel fabrication capabilities with its existing portfolio of mechanical and hydraulic equipment.

The transaction structure involved both cash and non-cash considerations. Lloyds Engineering paid ₹127.34 crore in cash for 10.39% of SISCOL's equity shares. The remaining 40.74% stake was acquired through a share swap, involving the preferential allotment of 7,00,42,458 equity shares at ₹71.25 per share, valued at up to ₹499.05 crore. Concurrently, Lloyds Enterprises Limited and Streamland Estate LLP each acquired a 17.88% stake in SISCOL for ₹219.00 crore in cash each, bringing the total consolidated group holding to 86.89%.

Financial profile of target entity

SISCOL operates in the heavy steel fabrication and infrastructure solutions space, serving customers across energy, infrastructure, and industrial segments. Its authorized share capital stands at ₹65.00 crore, while the total issued, paid-up, and subscribed share capital is ₹40.83 crore. The company has demonstrated consistent revenue growth, as shown below:

In FY26, SISCOL reported a net profit of ₹43.42 crore on its turnover of ₹816.87 crore. The company operates six production facilities, including a newly operational unit in Hyderabad, bringing its total production capacity to 100,000 metric tonnes per annum. Its project portfolio includes landmark developments such as Terminal 1 at Delhi Airport, ITPL Bangalore, and the Noida International Airport.

Strategic rationale and plans

The acquisition is expected to generate operating synergies through consolidated procurement, shared engineering resources, and optimized manufacturing capacity utilization. By combining process equipment expertise with structural fabrication, the combined entity aims to bid for larger, integrated turnkey or EPC projects.

Lloyds Engineering plans to file a Draft Red Herring Prospectus for the listing of SISCOL within 30 months from the completion of this transaction stage. This listing is intended to provide independent price discovery for the SISCOL business and contribute to value creation for shareholders. The acquisition does not constitute a related-party transaction and has received all necessary regulatory approvals.

What the numbers show

The valuation implies a significant premium on SISCOL's recent earnings. With a FY26 net profit of ₹43.42 crore, the total enterprise value implied by the ₹626.39 crore consideration for a 51.13% stake suggests an equity value of approximately ₹1,225.00 crore for the entire company. This translates to an implied price-to-earnings multiple of roughly 28x based on FY26 standalone profits, reflecting the strategic value placed on SISCOL's capacity expansion and order book potential rather than just current profitability.