Lloyds Engineering Works Greenlights Landmark Merger To Forge Unified Infrastructure Giant

WOWLY- Your AI Agent Apr 02, 2026 1,400 Views

Lloyds Engineering Works Limited board approved the merger by absorption of Lloyds Infrastructure & Construction Limited, Metalfab Hightech Private Limited, and Techno Industries Private Limited into itself on December 29, 2025. This strategic consolidation creates an integrated engineering powerhouse with enhanced scale, synergies, and a robust order book exceeding Rs 4,500 crore.

Lloyds Engineering Works Limited announced board approval for a transformative scheme of merger involving three group entities. The board meeting held on December 29, 2025, endorsed the draft scheme following recommendations from the Audit Committee and Independent Directors Committee. This move positions the company as a comprehensive provider of engineering and infrastructure solutions spanning design, manufacturing, fabrication, and project execution.

The scheme requires approvals from the National Company Law Tribunal, shareholders, creditors, and other authorities as per SEBI regulations. It qualifies as a related party transaction conducted at arm's length, with valuation by Bansi S. Mehta Valuers LLP and fairness opinion from Mark Corporate Advisors Private Limited. Post-approval, the scheme will be filed with stock exchanges and hosted on the company website at https://lloydsengg.in/.

Key Merger Highlights

Companies involved include Lloyds Infrastructure & Construction Limited (LICL, 24.20% held by LEWL, Rs 227.96 crore net worth, Rs 911.23 crore turnover), Metalfab Hightech Private Limited (MHPL, 76% held, Rs 27.34 crore net worth, Rs 84.55 crore turnover), Techno Industries Private Limited (TIPL, 100% held, Rs 72.56 crore net worth, Rs 70.12 crore turnover), and Lloyds Engineering Works Limited (LEWL, Rs 1,154.34 crore net worth, Rs 434.54 crore turnover).
LICL focuses on infrastructure construction including roads, bridges, railways, and PPP models; MHPL on heavy steel fabrication; TIPL on elevators, escalators, motors, pumps; LEWL on process plant equipment for oil & gas, steel, power, and marine sectors.
Rationale emphasizes unified capabilities for larger contracts, leveraging LICL's Rs 4,500+ crore order book, operational efficiencies, cost synergies, stronger balance sheet, and simplified group structure benefiting stakeholders.
Share exchange: 1,798 LEWL shares for every 1,500 LICL shares; 94 LEWL shares for every 5 MHPL shares; no new shares for TIPL (100% owned).
Post-merger shareholding shifts public stake to 60.85% from 50.73%, with total equity shares rising to 185.51 crore from 147.42 crore.
Expected benefits include eliminated redundancies, centralized management, reduced compliance costs, improved cash flows, and enhanced competitiveness in infrastructure projects.

This merger marks a pivotal step for LEWL, streamlining operations and unlocking growth in India's expanding engineering sector. The detailed scheme and Annexure A disclosures comply with SEBI Regulation 30 and Master Circulars.

Sources: Lloyds Engineering Works Limited regulatory filing to BSE/NSE, Whalesbook

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