Lloyds Engineering Works takes 51.70% SISCOL stake

Lloyds Engineering Works Limited held 51.70% of Steel Infra Solutions Company Limited, or SISCOL, at September 30, 2026, making SISCOL its subsidiary after issuing 7,00,42,458 shares for non-cash consideration, purchasing 42,44,784 SISCOL shares for cash and acquiring 2,29,490 shares through exercised employee stock options.

How did Lloyds Engineering Works acquire SISCOL?

Lloyds Engineering Works acquired its SISCOL holding through three disclosed routes, with the principal leg completed on August 17, 2026. Its Securities Issue Committee approved the preferential allotment of 7,00,42,458 Lloyds Engineering Works equity shares in return for 1,66,35,087 SISCOL equity shares.

The preferential shares had a face value of Rs 1 each and an issue price of Rs 71.25 each. The consideration was other than cash, so Lloyds Engineering Works exchanged its own shares for the stated SISCOL stake rather than reporting a cash payment for that block.

Lloyds Engineering Works also acquired 42,44,784 SISCOL equity shares for cash from SISCOL shareholders. The filing does not disclose the amount paid, the price per SISCOL share or the sellers, so the cash value of this acquisition leg cannot be determined from the announcement.

Subsequently, Lloyds Engineering Works acquired another 2,29,490 SISCOL shares following the exercise of employee stock options, or ESOPs. Together, the non-cash exchange, cash purchase and ESOP-related acquisition resulted in a 51.70% SISCOL shareholding at September 30, 2026.

What changed when SISCOL became a subsidiary?

SISCOL became a Lloyds Engineering Works subsidiary when the company’s holding reached 51.70% at September 30, 2026. The independent auditor’s review separately identifies SISCOL as a subsidiary with effect from August 17, 2026, the date of the preferential allotment.

The September 2026 consolidated results list SISCOL alongside Metalfab Hightech Private Limited, Techno Industries Private Limited and Lloyds Advance Defence Systems Limited as subsidiaries. In contrast, Lloyds Infrastructure & Construction Limited remained an associate, with Lloyds Engineering Works reporting Rs 27.52 crore as its share of that associate’s profit after tax for the half year.

Lloyds Engineering Works’ consolidated total assets rose to Rs 4,445.73 crore at September 30, 2026 from Rs 2,369.08 crore at March 31, 2026. Goodwill increased to Rs 990.63 crore from Rs 166.95 crore over the same period, but the filing does not attribute this increase specifically to the SISCOL acquisition.

Non-controlling interest, the share of subsidiary equity not owned by Lloyds Engineering Works, increased to Rs 612.18 crore at September 30, 2026 from Rs 12.46 crore at March 31, 2026. The filing does not provide a subsidiary-by-subsidiary split of this balance, including the portion related to SISCOL’s remaining 48.30% ownership.

What did SISCOL report in the September 2026 results?

SISCOL reported total assets of Rs 844.23 crore in the reviewed interim financial information included with Lloyds Engineering Works’ September 2026 consolidated results. The auditor reported this information as part of the subsidiary data reviewed for the quarter and half year ended September 30, 2026.

SISCOL recorded revenue of Rs 167.52 crore for both the quarter and half year ended September 30, 2026, according to the auditor’s report. The identical reported figures reflect SISCOL’s inclusion as a subsidiary from August 17, 2026 rather than a full six-month comparative contribution.

SISCOL’s reported net profit after tax was Rs 7.38 crore for the September 2026 quarter and Rs 7.38 crore for the half year. Its total comprehensive income was also Rs 7.38 crore in each reported period, while the filing provides no SISCOL results for the half year ended September 30, 2025.

At group level, Lloyds Engineering Works’ revenue from operations rose to Rs 1,120.70 crore in the half year ended September 30, 2026 from Rs 533.67 crore a year earlier. Net profit after tax before the share of associate profit increased to Rs 98.48 crore from Rs 60.38 crore, though these consolidated figures do not isolate SISCOL’s effect.

What share and ESOP actions accompanied the SISCOL transaction?

Lloyds Engineering Works’ paid-up equity share capital was Rs 154.95 crore at September 30, 2026, compared with Rs 143.95 crore at March 31, 2026. The August 17 preferential issue used for the SISCOL transaction was accompanied on the same date by a separate allotment of 7,00,000 shares for cash at Rs 71.25 each.

The company also converted 1,47,14,074 partly paid-up equity shares into fully paid-up shares on July 29, 2026. That conversion preceded the SISCOL preferential issue and was a separate corporate action disclosed in the September 2026 financial-results notes.

On September 25, 2026, shareholders approved an increase in the Lloyds Engineering Works ESOP pool from 4.40 crore options to 7.35 crore options through a postal ballot. The pool expansion was separate from the SISCOL acquisition, although the exercised SISCOL ESOPs formed one of the three routes to the final 51.70% holding.

After SISCOL entered the subsidiary list, the Lloyds Engineering Works nomination and remuneration committee approved 10,35,050 ESOPs for eligible SISCOL employees on October 10, 2026. The exercise price was Rs 9.50 per option, the same price approved for 12,17,000 options granted to eligible Lloyds Engineering Works employees on that date.

What should investors watch after the SISCOL acquisition?

Lloyds Engineering Works reported Rs 2,898.49 crore of orders in hand at September 30, 2026 in its single reported segment, engineering products and services. The filing does not provide a separate SISCOL order book, revenue target, margin target or integration timetable following the August 17, 2026 subsidiary classification.

The company’s consolidated balance sheet also showed borrowings of Rs 336.35 crore at September 30, 2026, comprising Rs 114.95 crore of non-current borrowings and Rs 221.40 crore of current borrowings. At March 31, 2026, the corresponding borrowings were Rs 9.20 crore and Rs 24.63 crore, while the filing does not assign the changes to SISCOL alone.

Conclusion

The transaction gave Lloyds Engineering Works control of SISCOL through a share-for-share preferential issue, a cash purchase from SISCOL shareholders and the acquisition of shares through exercised ESOPs. SISCOL’s Rs 844.23 crore of reported assets, Rs 167.52 crore of reported revenue and Rs 7.38 crore of reported profit were included in the reviewed September 2026 subsidiary information after its August 17, 2026 inclusion.

The next disclosure to watch is Lloyds Engineering Works’ subsequent consolidated reporting, which may provide a longer period of SISCOL revenue and profit after the August 17, 2026 consolidation date. Investors can also monitor implementation of the October 10, 2026 grant of 10,35,050 SISCOL employee options and any later disclosure on the Rs 2,898.49 crore order book.