Lloyds Engineering Works: No Deviation in Rights Issue Fund Utilization and ESOP Grant Update

Lloyds Engineering Works Limited has reported no deviation in the utilization of funds raised through its rights issue for the quarter ended September 30, 2025, while also granting employee stock options (ESOPs) under its Employee Stock Option Plan-2021.

Rights Issue Fund Utilization

The company filed its quarterly statement for the period ending September 30, 2025, confirming that there was no deviation in the use of funds raised through its rights issue. Key details include:

Funds were raised on June 5, 2025, through allotment of 30,85,17,476 partly paid-up equity shares at Rs. 32 per share.
The original allocation was Rs. 493.62 crores, later modified to Rs. 487.59 crores.
No funds were utilized during the quarter.
India Ratings Research Private Limited, serving as the monitoring agency, confirmed no deviation from stated objectives.
The company's audit committee provided no comments on the fund utilization.
The balance amount on the partly paid shares is payable in calls to be completed by March 31, 2026.

ESOP Grant Details

In a separate development, Lloyds Engineering Works has announced an ESOP grant under its Employee Stock Option Plan-2021, demonstrating a commitment to align employee interests with the company's long-term growth.

Detail	Value
Total Options Granted	4,25,784 ESOPs
Beneficiaries	Employees of two subsidiary companies
	- Techno Industries Private Limited: 3,20,000 ESOPs
	- Lloyds Infrastructure and Construction Limited: 1,05,784 ESOPs
Exercise Price	Rs 9.50 per share for both allocations
Vesting Period	Options will vest after 1 year but within 7 years from the grant date
Exercise Period	Within 3 years from the respective vesting date
Conversion Ratio	Each option converts to one equity share upon exercise

Regulatory Compliance and Approvals

The company has secured in-principle approval from both the BSE Limited and National Stock Exchange of India Limited for the ESOP grants. This adherence to regulatory requirements underscores Lloyds Engineering Works' commitment to transparency and corporate governance.

Financial Impact

The company has stated that the diluted earnings per share impact from these options is expected to be negligible, suggesting that the ESOP grant is not anticipated to significantly affect the company's financial metrics in the near term.

Strategic Implications

This ESOP grant to subsidiary employees indicates Lloyds Engineering Works' strategy to:

Enhance talent retention across its group companies
Align subsidiary employee interests with the parent company's performance
Foster a sense of ownership and long-term commitment among key personnel

Market Context

Employee stock options have become an increasingly popular tool for companies to attract, retain, and motivate talent, especially in competitive industries. By extending these benefits to subsidiary employees, Lloyds Engineering Works is positioning itself as an attractive employer within the engineering and infrastructure sectors.

The move comes at a time when companies are focusing on employee engagement and retention strategies in a competitive job market. It also aligns with the broader trend of Indian companies adopting more employee-friendly policies to drive growth and innovation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.22%	-0.25%	-3.82%	+10.75%	-13.28%	+9,688.33%

Lloyds Engineering Works Limited (LEWL) has announced a significant milestone in its growth trajectory, securing a major order as part of a consortium for a pellet plant project. The company, along with its consortium partners Primetals Technologies India Pvt. Ltd and Primetals Technologies Austria GmbH, has been awarded a contract by SAIL-IISCO Steel Plant for the design and execution of a 4.2 MTPA Pellet Plant Complex in Burnpur, West Bengal.

Project Details

Aspect	Details
Total Contract Value	₹613.00 crore (Indian portion) + €18.26 million (European portion)
Project Scope	Design and execution of 4.2 MTPA Pellet Plant Complex
Location	SAIL's IISCO Steel Plant, Burnpur, West Bengal
Project Duration	39 months from the effective date of the contract
LEWL's Role	Detailed design, engineering, and supply of critical process equipment and systems

Strategic Significance

This order marks a significant achievement for LEWL, showcasing its growing reputation in the engineering sector and its ability to secure high-value projects. Over the past two years, the company has established over 10 collaborations with domestic and international partners, which have been instrumental in expanding its technical capabilities and market reach.

Management Commentary

Shreekrishna Gupta, Wholetime Director of LEWL, commented on the order, stating, "This order reflects the industry's confidence in Lloyds Engineering's technical capabilities and collaborative approach. We have consciously built strategic partnerships across geographies and technologies, and this project exemplifies how such collaborations can evolve into transformative opportunities."

Company Profile

Lloyds Engineering Works Limited, incorporated in 1994, specializes in providing customized process plant equipment and comprehensive engineering solutions. The company's expertise spans across various sectors including Mining to Metal (Steel), Hydrocarbon, Oil & Gas, Thermal Power Plants, Nuclear Power Plants, Heat recovery, and Marine sectors.

Future Outlook

With this latest order, LEWL continues to strengthen its position in the heavy engineering sector. The company aims to further deepen its existing alliances and explore new partnerships to convert collaborations into additional high-value engineering and manufacturing projects.

As LEWL executes this significant project for SAIL, it not only adds to its expanding portfolio but also marks another milestone in its journey to establish itself as a world-class engineering enterprise of scale and substance.