Intimation for preferential issue of equity shares as discharge of non cash consideration for acquiring equity stake in Thriveni Pellets Private Limited
LLOYDSME · price
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Lloyds Metals' board approved the acquisition of a 49.99% stake in Thriveni Pellets Private Limited (TPPL) for a total deal value of about Rs 495.7 crore, of which Rs 209.8 crore will be paid in cash and Rs 285.88 crore via a share swap (allotment of 19.57 lakh preferential shares at Rs 1,460.50 each) to Adler Industrial Services and Thriveni Earthmovers. TPPL posted turnover of Rs 1,124.94 crore in FY25 and is in the steel and iron pellets business. The board also cleared a 19.40% stake purchase in Mandovi River Pellets Pvt Ltd for Rs 16.49 crore, a public NCD issue of up to Rs 2,500 crore, and a wholly owned subsidiary in Dubai (DMCC) with capital outlay of about Rs 597 crore. Additionally, 31 lakh warrants held by non-promoters were converted into equity shares (raising Rs 149.11 crore), and an EGM is scheduled for September 11, 2025 to seek shareholder approvals.
The TPPL and Mandovi acquisitions strengthen Lloyds Metals' position in the iron-ore-to-pellets value chain and could boost long-term revenues, but the share-swap component will dilute existing shareholders by roughly 0.4% (19.57 lakh new shares on a 52.33 crore base). Combined with the Rs 2,500 crore NCD plan and a ~Rs 597 crore Dubai investment, the company is clearly in a major capex and expansion mode, which may keep leverage and equity dilution in focus for short-term investors.