Madhu Kela Joins Lloyds Engineering via Rs 1,073 Crore SISCOL Acquisition

Lloyds Engineering has announced a massive strategic expansion through the acquisition of an 88.12% stake in Steel Infra Solutions Company (SISCOL). This landmark deal, valued at approximately Rs 1,073 crore, will see veteran investor Madhu Kela’s firm, MK Ventures, transition into a significant shareholder in Lloyds Engineering.

The Strategic Deal Structure and Valuation

The acquisition of SISCOL is structured through a sophisticated combination of cash and share swaps. Lloyds Engineering will directly acquire a 52.16% stake in SISCOL for roughly Rs 635.4 crore. To complete the 88.12% majority stake, group entities Lloyds Enterprises and Streamland Estate LLP will each acquire a 17.98% stake for Rs 219 crore.

The total transaction values SISCOL at approximately Rs 1,220 crore. To facilitate the transfer of ownership, Lloyds Engineering’s board has approved a preferential issue of up to 7.06 crore equity shares, worth Rs 503.56 crore, to SISCOL's selling shareholders. Additionally, a separate preferential issue of 7 lakh shares worth Rs 4.99 crore has been approved for cash. These proposals are awaiting shareholder approval at an extraordinary general meeting scheduled for July 15.

Madhu Kela’s Entry into Lloyds Engineering

A key highlight of this transaction is the involvement of boutique investment firm MK Ventures, owned by renowned market veteran Madhu Kela. Currently, MK Ventures holds a 4.27% stake in SISCOL.

As part of the share swap mechanism, MK Ventures will transfer 17.33 lakh shares of SISCOL. In exchange, the firm will receive approximately 72.95 lakh equity shares of Lloyds Engineering through a preferential allotment. This move effectively pivots Kela’s interest from the target company to the acquiring entity, making him a key investor in the expanded Lloyds Engineering ecosystem.

Scaling Infrastructure and EPC Capabilities

This acquisition is a major play to dominate the engineering, structural fabrication, and EPC (Engineering, Procurement, and Construction) sectors. SISCOL brings an impressive track record, having executed 187 structural steel projects across 22 Indian states since 2018. Their portfolio includes high-profile assets such as Delhi Airport Terminal 1, Noida International Airport, and the Dwarka Convention Centre.

Entitas gabungan ini akan memiliki kekuatan industri yang signifikan, termasuk:

  • Manufaktur & Desain: Lebih dari 10 fasilitas manufaktur dan enam pusat teknik/desain.
  • Kapasitas Fabrikasi: Kapasitas fabrikasi struktural awal sebesar 150.000 metrik ton per tahun (MTPA), dengan rencana peta jalan untuk ditingkatkan menjadi 200.000 MTPA.
  • Ekosistem Klien: Akses ke daftar klien blue-chip termasuk L&T, Tata Projects, Adani Group, Shapoorji Pallonji, dan DP World.

Dengan mengintegrasikan keahlian SISCOL, Lloyds Engineering bertujuan untuk menawarkan solusi "design-to-delivery" end-to-end untuk sektor-sektor kritis seperti pertahanan, pusat data, transportasi, dan pengembangan perkotaan.

Poin Penting

  • Konsolidasi Besar: Lloyds Engineering mengakuisisi 88,12% saham di SISCOL dalam kesepakatan senilai Rs 1,073 crore untuk memperkuat jejak EPC dan fabrikasi strukturalnya.
  • Partisipasi Investor: Investor veteran Madhu Kela (melalui MK Ventures) akan menerima sekitar 7,3 juta saham Lloyds Engineering sebagai bagian dari pengaturan pertukaran saham.
  • Skala yang Ditingkatkan: Merger ini menciptakan raksasa industri dengan 10+ pabrik manufaktur dan peta jalan untuk memperluas kapasitas fabrikasi struktural menjadi 200.000 MTPA.