Lloyds Engineering ₹504 Cr Allotment to Close SISCOL (2026)

What the latest approval means

Lloyds Engineering Works has moved a key step closer to completing its strategic acquisition of Steel Infra Solutions Company Limited (SISCOL) by approving a preferential allotment tied to the share-swap leg of the deal. The company’s Securities Issue Committee cleared the allotment of 7.07 crore equity shares at an issue price of ₹71.25 per share. The total value of the preferential issue works out to ₹504.04 crore. According to the disclosed structure, the allotment is designed to both finalise the acquisition via a non-cash swap and raise cash from non-promoters.

The transaction builds on the acquisition plan announced in June 2026, under which Lloyds Engineering and associated entities are set to buy an aggregate 88.12% stake in SISCOL. The overall consideration for the broader deal is stated at ₹1,073.40 crore. A mix of cash and equity issuance is being used across different legs of the transaction.

Preferential allotment: size, price, and value

The preferential allotment approved is for 7.07 crore shares at ₹71.25 each. This translates into a total consideration of ₹504.04 crore. Within this, the company disclosed that 7.00 crore shares were allotted on a preferential basis for ₹499.05 crore specifically to complete the acquisition of SISCOL.

The non-cash equity swap is central to how Lloyds Engineering is paying part of the purchase consideration to SISCOL’s selling shareholders. The company has also indicated that the allotment supports cash raising from non-promoters, alongside completing the strategic acquisition element. The disclosed issue price of ₹71.25 per share is the reference used for the stated rupee values of the equity component.

How the share swap completes the SISCOL acquisition

Lloyds Engineering’s filings state that its core asset portfolio now includes a controlling stake in SISCOL via the non-cash equity swap of 7.00 crore shares. The company described this as the strategic acquisition leg that completes the purchase of 1.66 crore shares of SISCOL. The value attributed to this swap is ₹499.05 crore.

Separately, disclosures around the June 2026 announcement described the share-swap component of Lloyds Engineering’s 52.16% acquisition as being worth about ₹503.6 crore (also reported as ₹503.56 crore in some references). The broader structure consistently indicates that a meaningful portion of Lloyds Engineering’s direct purchase is settled through preferential equity issued to SISCOL selling shareholders.

₹200 crore Tata Capital loan to fund the cash leg

Alongside the equity issuance route, Lloyds Engineering has also lined up debt financing for the cash component of its SISCOL purchase. The company executed a secured loan agreement of ₹200 crore with Tata Capital Limited. The transaction date disclosed for this loan agreement is August 13, 2026.

The stated purpose is to finance the cash-based equity acquisition in SISCOL. The loan is fully secured through a pledge of SISCOL equity shares. The company positioned this borrowing as a key financing milestone supporting its inorganic expansion, with SISCOL described as operating in India’s steel infrastructure segment.

Deal structure: who buys what in the 88.12% purchase

Under the transaction structure disclosed earlier, Lloyds Engineering, together with Lloyds Enterprises Limited and Streamland Estate LLP, plans to acquire about 88.12% of SISCOL. The total consideration for the 88.12% stake is reported as ₹1,073.40 crore. Lloyds Engineering itself is set to acquire a controlling 52.16% stake for ₹635.40 crore through a combination of cash and share swap.

The cash and equity split for Lloyds Engineering’s 52.16% leg has been reported as cash consideration of ₹131.8 crore and a share-swap portion of about ₹503.6 crore. The remaining 35.96% within the 88.12% aggregate is planned to be acquired by Lloyds Enterprises Limited and Streamland Estate LLP, with each buying 17.98% for ₹219.00 crore in cash.

Approvals, meetings, and target timelines disclosed

The acquisition plan was announced on June 18, 2026, following a board meeting. The transaction is governed by a Share Purchase, Share Subscription, and Shareholders’ Agreement (SPSSHA), as disclosed. Lloyds Engineering had also scheduled an Extraordinary General Meeting (EGM) on July 15, 2026 to seek shareholder approval for acquiring the 88.12% stake.

A target completion date of July 31, 2026 was stated in the earlier disclosures, subject to shareholder and regulatory approvals. The preferential allotment now approved by the Securities Issue Committee is positioned as part of executing the share-swap mechanics needed for closing.

Example disclosed: MK Ventures in the share-swap route

One disclosed example of the share-swap mechanics involves MK Ventures, a boutique investment firm owned by investor Madhu Kela, which held a 4.27% stake in SISCOL. As per the company’s filing referenced in the provided details, MK Ventures is to transfer 17.33 lakh shares of SISCOL and receive about 72.95 lakh equity shares of Lloyds Engineering through the preferential allotment route.

This illustration highlights how SISCOL shareholders are being compensated partly through Lloyds Engineering shares rather than only cash, aligning with the stated mix-of-consideration approach.

What Lloyds Engineering says about SISCOL’s growth plans

In the June 2026 disclosure, the company indicated operational ambition tied to the transaction. The stated plan is to double SISCOL’s heavy steel fabrication capacity to a range of 150,000 to 200,000 metric tonnes per annum. The same disclosure also laid out a roadmap to file a Draft Red Herring Prospectus (DRHP) for an IPO of SISCOL within 30 months.

These targets were presented as part of the strategic rationale behind bringing SISCOL into the group structure, with SISCOL expected to become a subsidiary of Lloyds Engineering upon completion of the controlling stake acquisition.

Key facts at a glance

Acquisition structure (as disclosed)

Why the financing and allotment matter for investors

The disclosed structure shows Lloyds Engineering using both equity issuance and secured debt to execute a large, multi-party acquisition without relying only on cash. The preferential allotment directly supports the share-swap component, which is material in size compared with the overall transaction consideration. The ₹200 crore Tata Capital facility, secured by pledged SISCOL shares, supports the cash-based leg and provides clarity on how the company intends to fund that portion.

From a governance and process standpoint, the transaction has been presented as moving through defined steps: board approval in June 2026, shareholder approval sought through the July 15 EGM, a targeted July 31 completion timeline, and then execution milestones such as the August 13 secured loan agreement and the subsequent preferential allotment approvals.

Conclusion

Lloyds Engineering Works’ approval of a 7.07 crore share preferential allotment at ₹71.25 per share, together with the ₹200 crore secured Tata Capital loan, are key building blocks in closing the SISCOL acquisition under the previously disclosed ₹1,073.40 crore transaction framework. The company has outlined a mix of cash and equity to acquire an aggregate 88.12% stake, with Lloyds Engineering directly targeting a 52.16% controlling stake. The next visible milestones remain the completion steps tied to shareholder and regulatory approvals and the closing of the acquisition as per the company’s stated timelines.