In a significant capital-raising initiative, Lloyds Enterprises Limited has announced its plan to raise up to ₹999 crore (₹99,900 lakhs) through a Rights Issue of partly paid-up equity shares, as per the outcome of its Board of Directors meeting held on July 21, 2025.

This fundraising move is part of the company's strategic plan to strengthen its capital base and fuel future growth. The issue will be open to eligible shareholders whose names appear on the record date, which will be communicated at a later stage.

Details of the Rights Issue

According to the disclosure submitted to the BSE and National Stock Exchange (NSE), the company will issue partly paid-up equity shares having a face value of ₹1 each. The issue will be conducted in accordance with the provisions of:

• Companies Act, 2013

• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

• Other applicable statutory and regulatory frameworks

The Rights Issue will be subject to regulatory and statutory approvals, and the company has constituted a Rights Issue Committee to oversee the entire process.

Purpose of Fundraising

While the company has not specifically disclosed the end-use of the proceeds from this issue, such capital raises are typically aimed at:

• Business expansion and working capital augmentation

• Debt reduction

• Investments in subsidiaries or strategic projects

• Modernisation or capacity enhancement

Given the scale of the fundraising—nearly ₹1,000 crore—the company is likely aiming for a robust capital infusion to support long-term growth and strengthen its financial stability in an evolving economic landscape.

Board Approval and Timelines

The Board of Directors met on July 21, 2025, from 11:00 a.m. to 11:35 a.m. IST, and formally passed the resolution to proceed with the Rights Issue. The following key developments were approved:

• Issue of partly paid-up equity shares to existing shareholders

• Total fundraising not exceeding ₹99,900 lakhs

• Formation of a Rights Issue Committee to determine:

  • Issue price

  • Rights entitlement ratio

  • Payment terms

  • Record date

  • Schedule of the issue

The final structure of the Rights Issue will be made available in the Letter of Offer, which will be filed with SEBI and other exchanges.

What Are Partly Paid-Up Equity Shares?

Partly paid-up shares allow investors to subscribe to equity by paying a portion of the total share price upfront, with the balance payable in one or more calls as decided by the company. This provides affordability to investors while ensuring future inflows for the company.

For investors, it is crucial to note:

• Failure to pay call amounts may result in forfeiture of shares

• Dividend eligibility arises only upon full payment

• The shares are tradable, subject to SEBI regulations

This method is increasingly being adopted by companies to provide flexibility in capital raising and to stagger the burden on shareholders.

Regulatory Compliance and SEBI Guidelines

Lloyds Enterprises' Rights Issue will adhere to SEBI’s Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024, and the latest amendments under SEBI LODR Regulations, ensuring transparency, proper investor communication, and statutory disclosures.

The company has also assured the exchanges that it will continue to update shareholders through its official website (www.lloydsenterprises.in) and stock exchange announcements.

Stock Market Response

As of now, the stock market reaction to the announcement is awaited. Typically, a Rights Issue of this scale may result in:

• Share price adjustment on the record date

• Increased trading volumes as investors evaluate their entitlements

• Improved long-term outlook if funds are deployed efficiently

Investors and analysts will closely track details like the issue price and entitlement ratio, which can affect short-term trading sentiment.

About Lloyds Enterprises Limited

Lloyds Enterprises Limited is a listed entity with a presence in industrial sectors. Over the years, the company has diversified operations and explored capital market instruments for expansion. Its registered office is located in Lower Parel, Mumbai, and it is listed on both BSE and NSE under the codes:

• BSE Scrip Code: 512463

• NSE Symbol: LLOYDSENT

With this Rights Issue, the company is taking a strategic step to scale operations, reduce dependency on external borrowings, and prepare itself for future opportunities in a dynamic economic environment.

What Shareholders Should Do

Investors holding Lloyds shares should prepare for the upcoming Rights Issue by:

• Verifying email and contact details registered with their depository participant (DP)

• Watching for the record date announcement to determine eligibility

• Deciding whether to subscribe fully, partially, or renounce their rights entitlement

• Monitoring further disclosures from the company and SEBI

Rights Issues offer an opportunity to increase holding in the company at a potentially discounted price. However, shareholders should evaluate the offer structure and payment timeline before committing funds.

Conclusion

The announcement of a ₹999 crore Rights Issue by Lloyds Enterprises Limited marks a significant financial event in its corporate history. With a strategic approach and regulatory compliance, the move has the potential to unlock future growth opportunities for the company and offer value to long-term shareholders.

As the market awaits finer details like pricing and record date, this Rights Issue sets the stage for a transformative phase in the company’s evolution. Shareholders and analysts alike will be keenly watching how the company executes this plan and deploys the capital raised to deliver sustainable results.

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