Lloyds Engineering Works Limited (LEWL), a renowned engineering solutions provider in India, has taken a significant step toward securing its long-term growth by approving a ₹987 crore Rights Issue. This decision was made during a meeting of the Board of Directors on April 17, 2025, following a prior resolution passed on July 30, 2024. The move reflects the company’s determination to enhance its financial standing and further accelerate its strategic roadmap, which includes a variety of key expansions and acquisitions.

The Rights Issue involves the issuance of 30,85,17,476 equity shares on a partly paid basis, marking a 20.93% increase in paid-up share capital on a post-Rights Issue basis. The rights issue price is set at ₹32 per share, with ₹16 payable on application, and the remaining balance will be due in one or more calls, due by March 31, 2026. The Record Date to determine shareholder eligibility for Rights Entitlement is April 28, 2025, and the Rights Issue will open on May 15, 2025, with a closing date of May 30, 2025.

The Rights Issue entitlement ratio has been set at 9:34, meaning eligible shareholders will receive 9 Rights Equity Shares for every 34 fully paid-up equity shares held as of the Record Date.

This Rights Issue is integral to Lloyds Engineering Works Limited’s (LEWL) journey towards unlocking new dimensions of growth. The funds raised will be strategically deployed across a variety of initiatives designed to push LEWL to the next level. The major areas of focus include:

1. Upgrading manufacturing facilities: The company plans to upgrade its existing facilities at Murbad, Thane, to improve productivity, operational efficiency, and enhance long-term structural resilience. This refurbishment is expected to contribute significantly to LEWL's future growth trajectory.

2. Acquisition of Bhilai Engineering Corporation Limited (BECL): The funds will be directed towards the acquisition, refurbishment, and overhaul of critical engineering assets of BECL, which will enable LEWL to scale up production across various engineering verticals. This acquisition will significantly enhance LEWL's fabrication, machining, and assembly capabilities.

3. Expansion into the elevator and materials movement segment: A key portion of the funds will go towards augmenting the capabilities of Techno Industries Pvt Ltd., which was acquired by LEWL in FY25. This acquisition marks LEWL’s entry into the electrical engineering sector and will catalyse growth in high-potential areas like motors, pumps, elevators, escalators, and AMC services.

Additionally, funds will support working capital needs to meet the growing order book across all LEWL locations, ensuring the company can handle the execution of large, complex turnkey engineering projects and products in a timely manner.

The capital raised through this Rights Issue will not only contribute to LEWL’s strategic goals but will also be monitored by India Ratings, which has been appointed as the monitoring agency in accordance with the SEBI (ICDR) Regulations, 2018.

In terms of strategic initiatives, the company has already made significant strides in FY25, with numerous high-impact projects set in motion. These include:

• Technological Collaborations: LEWL has partnered with The Material Works Ltd (USA) for EPS Gen 4 Eco Pickling technology, an acid-free solution that reduces capital expenditure (capex), operational expenditure (opex), and minimizes environmental impact. Additionally, the company has teamed up with TB Global Technologies Ltd (Japan) to supply marine loading arms and swivel joints for fluid transfer systems and port-based infrastructure. Further, LEWL has formed an alliance with Fincantieri S.p.a. (Italy) to develop advanced products for the Indian Navy and Coast Guard, expanding into defence, aerospace, and telecom-integrated engineering systems.

• Strategic Acquisitions: LEWL has made substantial moves to bolster its market position. This includes the acquisition of the engineering division of Bhilai Engineering Corporation Ltd (BECL), which will enable the company to significantly expand its fabrication, machining, and assembly capabilities. Moreover, LEWL acquired a 77% stake in Techno Industries Pvt Ltd., a step that broadens its capabilities in electrical engineering.

• Land Acquisition: In a move to ensure future organic growth, LEWL has acquired 63 acres of land near Nagpur, providing a strategic location for expanding its operations and strengthening its market position.

About Lloyds Engineering Works Limited: Incorporated in 1994, Lloyds Engineering Works Ltd (LEWL) has established itself as a leader in providing customized engineering solutions in India. The company offers comprehensive services, including the design, manufacturing, fabrication, and installation of equipment for the carbon sector, oil & gas, steel plants, power plants, and nuclear plant boilers, among others. The company operates state-of-the-art manufacturing facilities in Murbad and Thane and is headquartered in Mumbai.

With a diverse portfolio, advanced technology, and strong strategic alliances, LEWL is well-positioned to continue its growth trajectory and enhance its shareholder value in the coming years.

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