Stock Below Rs 100: Madhusudan Kela Becomes Investor In This Small-Cap Company; Stock In Focus After Rs 1,073 Crore Acquisition, Do You Own It?

On Friday, Indian equity benchmarks traded lower, with the Nifty 50 declining 154.90 points, or 0.64 per cent, to 24,013.10. Despite the broader market weakness, Lloyds Engineering Works share price gained 2.46 per cent to Rs 86.84 after the company announced the acquisition of a majority stake in Steel Infra Solutions Company Limited (SISCOL), a heavy steel fabrication and infrastructure solutions company.

Lloyds Engineering Announces Rs 1,073 Crore Acquisition

Lloyds Engineering Works informed the exchanges that it has entered into a Share Purchase, Share Subscription and Shareholders' Agreement (SPSSSHA) with Lloyds Enterprises Limited, Streamland Estate LLP and the shareholders of SISCOL. Under the agreement, the three entities will jointly acquire up to 3,57,80,117 equity shares of SISCOL, representing 88.12 per cent of its outstanding equity share capital, for a total consideration of approximately Rs 1,073.40 crore.

As part of the transaction, Lloyds Engineering will acquire up to 2,11,80,117 equity shares, equivalent to a 52.16 per cent stake in SISCOL, for around Rs 635.40 crore through a combination of cash consideration and share swap. Upon completion of the transaction, Lloyds Engineering will become the holding company of SISCOL.

Acquisition Aims To Strengthen EPC And Engineering Capabilities

According to the company, the acquisition is aligned with its strategy of building a diversified engineering and EPC platform. The transaction is expected to expand its product portfolio, generate operational synergies, strengthen its Order Book and improve its ability to bid for larger turnkey and EPC projects. The company also stated that it plans to pursue a future listing of SISCOL within 30 months of the completion of the first phase of the transaction.

SISCOL Reports Strong Financial Performance

Steel Infra Solutions Company Ltd operates in the heavy steel fabrication and infrastructure solutions segment, serving customers across energy, infrastructure and industrial sectors. For FY26, the company reported revenue of Rs 816.87 crore and a net profit of Rs 43.42 crore. SISCOL currently operates six manufacturing facilities with a total production capacity of 1,00,000 metric tonnes per annum and has contributed to projects including Delhi Airport Terminal 1, ITPL Bengaluru and Noida International Airport.

Madhu Kela-Backed MK Ventures Part Of Transaction

Notably, Ace Investor Madhu Kela-backed MK Ventures is among the shareholders participating in the share-swap transaction. As per the disclosure, MK Ventures holds a 4.27 per cent stake in SISCOL and is expected to transfer 17,32,650 shares of SISCOL in exchange for up to 72,95,368 equity shares of Lloyds Engineering under the proposed arrangement.

About Lloyds Engineering

Lloyds Engineering Works Ltd is engaged in the manufacturing of engineering equipment and execution of EPC projects across sectors such as oil & gas, power, steel, infrastructure and Defence. The company has been expanding its engineering capabilities through strategic acquisitions and investments.

The company recently approved borrowings of up to Rs 1,000 crore and an investment of up to Rs 2.5 crore in Lloyds Advance Defence Systems Limited, highlighting its focus on future growth opportunities and diversification.

What are your thoughts on Lloyds Engineering's RS1,073 crore acquisition of SISCOL and the company's expansion strategy in the EPC and infrastructure segment? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.