Madhu Kela to become investor in Lloyds Engineering as part of SISCOL acquisition, to receive nearly 73 lakh shares

Lloyds Engineering on Thursday announced the acquisition of an 88.12% stake in Steel Infra Solutions Company (SISCOL) in a deal valued at about Rs 1,073 crore, with boutique investment firm MK Ventures, owned by veteran investor Madhu Kela, among the shareholders who will receive Lloyds Engineering shares as part of the transaction.

The acquisition will be executed through a combination of cash and share swap. Lloyds Engineering will acquire a 52.16% stake in SISCOL for around Rs 635.4 crore, while group entities Lloyds Enterprises and Streamland Estate LLP will each acquire a 17.98% stake for Rs 219 crore.

As part of the share swap, MK Ventures, which owns a 4.27% stake in SISCOL, will transfer 17.33 lakh shares of the company and receive about 72.95 lakh equity shares of Lloyds Engineering through a preferential allotment, according to the company’s filing.

The overall transaction values SISCOL at around Rs 1,220 crore.

Lloyds Engineering’s board also approved a preferential issue of up to 7.06 crore equity shares worth Rs 503.56 crore to SISCOL’s selling shareholders through the share swap route. It separately approved a preferential issue of 7 lakh shares worth Rs 4.99 crore for cash. Both proposals are subject to shareholder approval at an extraordinary general meeting scheduled for July 15.

The acquisition significantly expands Lloyds Engineering’s presence in engineering, structural fabrication and EPC services, positioning the combined entity to undertake large infrastructure, industrial and commercial projects.
SISCOL has executed 187 structural steel projects across 22 states since 2018. Its portfolio includes Delhi Airport Terminal 1, Noida International Airport, the Dwarka Convention Centre, the International Hockey Stadium in Rourkela, railway and road bridges, data centres and industrial projects in India and overseas.The company counts L&T, Shapoorji Pallonji, Tata Projects, Adani Group companies, KEC International, Jindal Stainless and DP World among its clients.

Following the acquisition, the combined platform will have more than 10 manufacturing facilities, six engineering and design centres, structural fabrication capacity of around 1.5 lakh metric tonnes per annum, with plans to expand it to 2 lakh MTPA, along with enhanced EPC and civil execution capabilities.

Lloyds Engineering said the acquisition will strengthen its ability to offer integrated design-to-delivery solutions across airports, industrial infrastructure, transportation, defence, data centres and urban development while creating operational synergies across procurement, engineering, manufacturing and project execution.