• This is the 2nd RI from the company since December 2023.
• It started paying dividends from FY22 onwards.
• The company is engaged in the business of providing engineering and infrastructure
• The company marked growth in its top and bottom lines for the reported periods.
• Well-informed investors may park funds for medium to long term.
PREFACE:
The RI of this company is opening on May 15, 2025, and its offer document is dated April 19, 2025, but its offer documents were made available on BSE Web only in the noon of May 14, 2025. Practice of delayed submission of required info continues unabatedly.
ABOUT COMPANY:
Lloyds Engineering Works Ltd. (LEWL) – (erstwhile Lloyds Steels Industries Ltd.) was originally incorporated as Climan Properties Pvt. Ltd., and subsequently it changed it name to Climan Properties Ltd., to Encon Technologies Ltd., to Lloyds Encon Technologies (I) Ltd., to Lloyds Steel Industries Ltd. and finally to the existing one. Its holding company is Lloyds Enterprises Ltd. (erstwhile Shree Gopal Tradefin Ltd.).
LEWL is a process plant equipment manufacturing company. The Company, inter alia, provides engineering and infrastructure solutions, encompassing designing, engineering, manufacturing, fabrication and installation of heavy equipment, as well as machinery and systems for customers of hydrocarbon (oil & gas) sector, steel processing industries, captive power plants used in steel plants, marine sector, ports, heat exchangers used by nuclear power plants as well as other projects. It also offers services in civil construction related projects. Its acquired arm Techno Ind. Pvt. Ltd. is engaged in the business of manufacturing and marketing of elevators and escalators, motors, pumps etc. As of December 31, 2024, it had an order book worth Rs. 1278.13 cr. and for Techno the order book was Rs. 71.32 cr. As of February 28, 2025, the company had 323 employees on its payroll and 681 on Techno’s payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 308517476 equity shares of Re.1 each at a fixed price of Rs. 32 per share to mobilize Rs. 987.26 cr. The RI opens for subscription on May 15, 2025, and will close on May 30, 2025. The company is asking for 50% on application for the number of shares applied. Balance 50% by one or more calls as decided by the company from time to time. The company is offering RI in the ratio of 9 for 34 to its eligible stakeholders as of the record date of April 28, 2025. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 21.98 cr. for this RI process, and from the net proceeds, it will utilize Rs. 39.06 cr. for capex on replacement of industrial shed wall and roof sheeting etc., Rs. 134.00 cr. for acquisition of engineering assets of Bhilai Engineering Corp. Ltd., Rs. 336.53 cr. for working capital, Rs. 25.00 cr. for investment in equity shares of Techno Ind., Rs. 20 cr. for acquisition of leasehold land, and Rs. 344.31 cr. for general corporate purposes, unidentified acquisitions, Rs. 32.97 cr. for capex on purchase of machineries, Rs. 33.40 cr. for working capital of Techno Ind. Pvt. Ltd.
The RI is solely lead managed by Mark Corporate Advisors Pvt. Ltd., and Bigshare Services Pvt. Ltd., is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 116.55 cr. will stand enhanced to Rs. 147.40 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 4716.89 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total revenue of Rs. 318.41 cr. / Rs. 36.82 cr. (FY23), Rs. 631.68 cr. / Rs. 79.68 cr. (FY24). For 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs. 85.49 cr. on a total revenue of Rs. 631.17 cr.
On a consolidated basis along with Techno India, it posted a total income of Rs. 798.11 cr. with a net profit of Rs.89.02 cr. for FY24, and a total income of Rs. 414.04 cr. with a net profit of Rs. 44.78 cr. for H1 of FY25 ended on September 30, 2024.
DIVIDEND POLICY:
The company started paying a dividend from FY22 onwards. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects. However, the offer document has not provided any dividend payout data. As per BSE Web, it paid a dividend of 5%. 10% and 20% for the last three fiscals i.e., FY22, FY23 and FY24.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 539992 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 71.56 on April 25, 2025, and opened on an ex-right basis at Rs. 63.08 on April 28, 2025. Since then, it has marked a high/low of Rs. 63.28 / Rs. 48.76. The scrip last closed at Rs. 56.39 as of May 14, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 82.65 / Rs. 42.66.
The promoters’ holding has been around 56+% for the last three quarters ended with March 31, 2025. The counter is well managed above the RI price to lure investors.
Review By Dilip Davda on May 15, 2025
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
