Intimation of entering into Share Purchase Agreements for the acquisition of a 49.99%equity stake in Thriveni Pellets Private Limited
LLOYDSME · price
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Lloyds Metals and Energy has approved acquiring a 49.99% stake in Thriveni Pellets Private Limited (TPPL) for a combined value of around Rs. 496 crore, split between Rs. 200 crore in cash and Rs. 285.88 crore via a share swap (issuing 19.57 lakh Lloyds shares at Rs. 1,460.50 each to Adler Industrial Services for 49%) plus Rs. 9.81 crore cash to Thriveni Earthmovers for the remaining 0.99%. TPPL, a pellet maker with FY25 turnover of Rs. 1,124.94 crore, is a related party because Thriveni Earthmovers (TEMPL) is part of Lloyds' promoter group and already holds 51% in TPPL, so the deal needs shareholder approval at the EGM on September 11, 2025. In the same meeting, the board also approved acquiring a 19.40% stake in Mandovi River Pellets for Rs. 16.49 crore, raising up to Rs. 2,500 crore through NCDs in tranches, setting up a wholly owned subsidiary in Dubai (DMCC) with around Rs. 597 crore planned outlay, and allotting 31 lakh shares to non-promoters on conversion of warrants. Q1 FY26 standalone results were strong, with revenue of Rs. 2,408 crore and profit after tax of Rs. 634 crore (EPS Rs. 12.12).
The TPPL deal is a strategic backward-integration move that deepens Lloyds' foothold in the pellets value chain, complementing its iron ore mining and steel segments. Share dilution from the preferential swap is minor (around 0.37% expansion of share base), but the related-party nature and reliance on shareholder approval introduce some execution risk.