Lloyds Engineering Works Limited announced a significant corporate guarantee approval during its Board of Directors meeting held on December 26, 2025. The company's board has approved a corporate guarantee of ₹59 crores in favor of HDFC Bank for its subsidiary Techno Industries Private Limited.

Corporate Guarantee Details

The corporate guarantee arrangement involves specific parameters that demonstrate the company's support for its subsidiary's financial requirements. The guarantee has been structured to facilitate credit facilities for Techno Industries Private Limited through HDFC Bank.

Transaction Structure and Independence

The company has provided detailed disclosures regarding the nature of this corporate guarantee arrangement. Key aspects of the transaction structure include the relationship between the parties and the independence of the decision-making process.

Regulatory Compliance

The announcement has been made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive disclosures as required under the regulatory framework, including detailed information in the annexure attached to the intimation.

The corporate guarantee represents a strategic financial support mechanism for the subsidiary's operational requirements. Techno Industries Private Limited, being a subsidiary of Lloyds Engineering Works Limited, will benefit from enhanced credit facilities through this guarantee arrangement with HDFC Bank.

Corporate Communication

The formal communication was signed by Rahima Shaikh, Company Secretary and Compliance Officer (ACS: 63449), and has been submitted to both BSE Limited and the National Stock Exchange of India Limited. The company trades under the symbol LLOYDSENGG on NSE and has scrip code 539992 on BSE, with ISIN code INE093R01011.

Lloyds Engineering Works Limited has completed the acquisition of the remaining 12% equity stake in Techno Industries Private Limited (TIPL) for ₹22.70 crores. This strategic transaction makes TIPL a wholly-owned subsidiary of Lloyds Engineering Works, strengthening the company's position in the electrical engineering products sector.

Acquisition Details and Structure

The transaction was executed through an amended Share Purchase Agreement, originally entered into on July 30, 2024. Lloyds Engineering Works acquired 14,99,999 equity shares of TIPL at a face value of ₹10.00 each, completing its 100% ownership of the target company.

Target Company Profile

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, representing a strategic expansion into electrical engineering products for the Lloyds group.

Financial Performance Track Record

Techno Industries has demonstrated consistent operational performance over the past three years, with turnover figures reflecting stable business operations in the electrical engineering sector.

Strategic Rationale and Regulatory Compliance

The acquisition represents a strategic move to expand Lloyds Engineering Works' product portfolio into electrical engineering products, diversifying beyond its traditional business lines. The transaction has been structured as a related party transaction conducted on an arm's length basis, with no additional governmental or regulatory approvals required.

Lloyds Engineering Works filed the disclosure under Regulation 30 of SEBI Listing Regulations, with Company Secretary Pranjal Mahapure signing the regulatory filing on December 26, 2025. The completion of this acquisition strengthens the group's position in the capital goods and electrical engineering sectors while providing access to new market segments through TIPL's established manufacturing and marketing capabilities.