Lloyds Engineering Works Clarifies Details and Updates Regarding Preferential Issue of Equity Shares
LLOYDS ENGINEERING WORKS LIMITED has issued clarifications and updates pertaining to its planned preferential issue of equity shares, following an Extra-Ordinary General Meeting (EGM) held on July 15, 2026. The clarifications address queries from stock exchanges concerning the cash component of the offering and an addendum to the valuation report for shares offered for consideration other than cash.The company had previously applied for in-principle approval related to the proposed preferential allotment of 7,13,74,554 Equity Shares (comprising 7,06,74,554 Equity Shares and 7,00,000 Equity Shares). These clarifications provide details regarding the use of funds from the cash issue and address observations related to the valuation methodology.
Cash Component Details for Preferential Allotment
The preferential allotment of 7,00,000 Equity Shares is being offered to Non-Promoters and involves a cash consideration at an Issue Price of Rs. 71.25 per share. This offering aggregates to a total amount of Rs. 4,98,75,000/-.The purpose for the funds generated from this specific issue is tied to subscribing fresh Equity Shares in Steel Infra Solutions Company Limited (SISCOL).
Key financial details concerning the cash issue are summarized below:
| Parameter | Detail |
|---|---|
| Number of Shares offered | 7,00,000 |
| Issue Price per Share | Rs. 71.25 |
| Total Proceeds Expected | Rs. 4,98,75,000/- |
| Object of Issue | Subscription of fresh Equity Shares in SISCOL |
Fund Usage and Interim Management
The proceeds from the preferential allotment are designated to form part of the fund infusion into SISCOL. The company specified that these funds must be utilized within a set timeframe, which is before the Long Stop Date on or before March 31, 2027, as per applicable provisions.For any interim period prior to utilization for this primary purpose, LLOYDS ENGINEERING WORKS will keep the allocated funds in fixed deposits, liquid mutual funds, or such other permitted instruments.
Addendum to Valuation Report Released
Additionally, the company has provided an addendum to the valuation report concerning the issue of shares for consideration other than cash. This addendum incorporates all requisite valuation approaches, addressing observations raised by stock exchanges that initially noted not all three approaches (Cost Approach, Income Approach, and Market Approach) had been adopted for the valuation of the listed company.LLOYDSENGG Stock Price Movement
LLOYDS ENGINEERING WORKS LIMITED gained 1.37% in post-market trading today, settling at ₹89.06 after climbing by ₹1.20. The stock traded within a tight intraday range, testing as low as ₹86.31 and peaking at a high of ₹90.18 during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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