Lloyds Metals & Energy has completed the allotment of ₹700 crore worth of Non-Convertible Debentures (NCDs) through a private placement, securing long-term debt funding for its operations. The Committee of the Board of Directors approved the allotment via a circular resolution dated August 07, 2026, marking the finalization of the issuance process previously intimated to exchanges.

The company issued 70,000 debentures with a face value of ₹1,00,000 each. These senior, secured, listed, and rated instruments carry a fixed coupon rate of 9.02% per annum. The NCDs have a tenor of 10 years from the deemed date of allotment, with maturity scheduled for August 06, 2036. Interest payments will be made annually, with principal repayment occurring in installments starting from August 2033 through maturity.

The debt issuance is backed by an exclusive first charge by way of hypothecation over specific movable plant and machinery assets. The collateral includes Grinding Unit - 1 at Hedri, the DRI Konsari facility (2 x 100 TPD), and the 4 MW Power Plant at Konsari. Lloyds Metals & Energy has committed to maintaining a Security Cover Ratio of not less than 1.25:1 until the final settlement date, ensuring adequate asset backing for the lenders.

Credit rating agencies have assigned strong investment-grade ratings to the issue, reflecting the company’s creditworthiness. India Ratings and Research Private Limited assigned an 'IND AA/Stable' rating, while Crisil Ratings Limited provided a 'Crisil AA/Stable' rating. These ratings indicate a low credit risk profile for the debenture holders.

The allotment was disclosed pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details were submitted to BSE Limited and the National Stock Exchange of India Limited on August 07, 2026. The NCDs are proposed to be listed on the National Stock Exchange of India Limited (NSE).

What the Numbers Show

The successful closure of the ₹700 crore private placement provides Lloyds Metals & Energy with substantial long-term capital at a fixed cost of 9.02%. By securing this funding against tangible assets like grinding units and power plants, the company has locked in financing without diluting equity. The dual 'AA' ratings from leading agencies suggest that investors view the secured nature of the debt as sufficiently robust, allowing the company to raise significant capital for potential expansion or working capital needs while maintaining a stable capital structure.

Lloyds Metals & Energy has settled a customs duty demand of ₹7,74,60,071 raised by the Commissioner of Customs, Nagpur, for the misclassification of goods. The company received the original order on July 27, 2026, which confirmed the demand along with applicable interest and penalties under section 28(5) of the Customs Act, 1962. Management stated that the settlement carries no material impact on the company’s financials or operations.

The order, dated July 21, 2026, was issued following a review of the company’s import classifications. Lloyds Metals disclosed that it had paid the full amount of the differential custom duty, interest, and penalty prior to the issuance of the order. The disclosure was made pursuant to Regulation 30 read with Schedule III, Part A, Para A Clause 20 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Annexure 18 of SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Financial Breakdown of the Settlement

The total liability comprised the principal duty amount, statutory interest, and a fixed penalty. The company settled these amounts in full to resolve the matter with the customs authority.

Regulatory Context and Impact

The case arose from the misclassification of goods under the Customs Act. While such discrepancies can lead to prolonged litigation, Lloyds Metals resolved the issue through pre-payment of the assessed amounts. The company’s Board noted that the penalty levied does not have a material impact on its financial position.

The disclosure was signed by Akshay Pankaj Vora, Company Secretary, and disseminated to the Bombay Stock Exchange and the National Stock Exchange of India Limited on July 27, 2026. The complete order and disclosure details are available on the company’s website.