Lloyds Engineering Works Limited's Board of Directors convened on December 26, 2025, to approve several strategic business decisions that will significantly impact the company's operations and expansion plans. The meeting, held at 11:30 a.m., concluded at 12:50 p.m. with the approval of three major corporate actions, with the company filing detailed regulatory disclosures under Regulation 30 of SEBI Listing Regulations.

Strategic Acquisition of Techno Industries

The Board approved an amendment to the Share Purchase Agreement with Techno Industries Private Limited, originally entered into on July 30, 2024. This amendment covers the acquisition of the remaining 12% stake in Techno Industries for a consideration of ₹22.70 crores, making it a wholly-owned subsidiary.

Techno Industries Private Limited, incorporated on May 1, 2000, operates from its registered office in Ahmedabad, Gujarat. The company specializes in manufacturing and marketing pumps, motors, and elevators. With an authorized share capital of ₹15.00 crores consisting of 1.50 crore equity shares, the target company has a total issued, paid-up, and subscribed share capital of ₹12.50 crores.

Employee Stock Option Grant

The Board noted the grant of 11,55,074 employee stock options under the Employee Stock Option Scheme 2021. These options were approved by the Nomination and Remuneration Committee for employees of Lloyds Infrastructure and Construction Limited, an associate company.

Each option, upon exercise, will result in one equity share of the company. The options are subject to vesting conditions and must be exercised within the specified timeframe to avoid lapsing.

Corporate Guarantee Approval

The Board approved issuing a corporate guarantee of ₹59.00 crores in favor of HDFC Bank for Techno Industries Private Limited. This guarantee will support credit facilities for the subsidiary company, with no anticipated impact on the listed entity.

Strategic Impact and Business Expansion

The acquisition of Techno Industries represents a strategic move to expand Lloyds Engineering Works' product offerings into electrical engineering products, primarily pumps, motors, and elevators. This diversification aligns with the company's growth strategy and will provide access to new market segments. The completion of this acquisition is expected within one month, making Techno Industries a wholly-owned subsidiary and strengthening the company's position in the capital goods sector.

The corporate actions demonstrate Lloyds Engineering Works' commitment to strategic growth through acquisitions while maintaining employee engagement through stock option programs. These developments position the company for enhanced operational capabilities and market presence in the engineering and manufacturing sectors.

Lloyds Engineering Works has announced the establishment of a new subsidiary, "Lloyds Advance Defence Systems Limited," marking a significant strategic expansion into the defence manufacturing sector. The wholly owned subsidiary was incorporated on December 11, 2023, representing a formal corporate structure to enter the defence sector through strategic technology partnerships aimed at delivering enhanced defence solutions.

Strategic Defence Subsidiary Formation

The creation of Lloyds Advance Defence Systems Limited demonstrates a structured approach to defence sector entry by the capital goods manufacturer. This subsidiary formation provides a dedicated corporate entity to focus exclusively on defence-related operations, separate from the parent company's traditional non-electrical equipment manufacturing business.

Technology Partnership Strategy

The subsidiary's business model centers on forming strategic technology partnerships to enhance defence solutions. This collaborative approach suggests the company plans to leverage external expertise and technological capabilities to accelerate its entry into the defence manufacturing space, rather than developing all capabilities independently.

Manufacturing and Supply Capabilities

The defence subsidiary will focus on manufacturing and supplying advanced defence systems across multiple domains. This comprehensive approach positions the company to serve various segments within the defence sector, potentially including specialized defence technology solutions and multi-domain defence equipment supply.

Business Expansion Impact

The establishment of this dedicated defence subsidiary represents Lloyds Engineering Works' commitment to diversifying beyond its traditional capital goods manufacturing operations. This strategic move creates a separate corporate structure to pursue defence sector opportunities while maintaining focus on the company's core non-electrical equipment business.

The subsidiary formation aligns with the company's growth strategy and represents a significant step in expanding its business portfolio to include defence-related manufacturing through strategic partnerships and enhanced solution development.