Lloyds Metals and Energy Ltd disclosed that several promoters and PACs have entered into Non-Disposal Undertakings (NDUs) with SBICAP Trustee for a company loan. The agreement covers 27.05% of the total share capital but does not involve a pledge or transfer of voting rights.
Lloyds Metals Promoters Disclose Non-Disposal Undertakings on 27% Stake
Lloyds Metals and Energy Ltd (LMEL) promoters have created Non-Disposal Undertakings (NDUs) for over 15.2 million shares, representing 27.05% of the company's total equity.
Reader Takeaway: Promoters pledged shares as an NDU, maintaining voting control, to secure a Rupee Term Loan facility.
What just happened
Lloyds Metals and Energy Ltd filed a disclosure confirming that major shareholders, including Thriveni Earthmovers Pvt Ltd and several members of the Gupta family, have executed NDUs in favor of SBICAP Trustee Company Limited. This action was taken to support a Rupee Term Loan facility availed by the company.
Nature of Encumbrance
The company emphasizes that these agreements are strictly Non-Disposal Undertakings and do not constitute a formal share pledge. Under this arrangement, the legal and beneficial ownership of the shares remains with the promoters. Furthermore, the promoters retain all voting rights associated with these shares, meaning management control remains unchanged by this transaction.
Key NDU Details
The encumbrance covers a significant portion of the promoter block:
- Thriveni Earthmovers Pvt Ltd: 90,086,636 shares (16.00%)
- Sky United LLP: 20,000,000 shares (3.55%)
- Mukesh, Madhur, Priyanka, and Shreekrishna Gupta: 9,000,000 shares each (1.60% each)
- Crosslink Food and Farms Private Limited: 6,165,409 shares (1.10%)
- Lloyds Enterprises Limited: 2,596 shares (negligible)
Why this matters
For investors, the NDU is a standard corporate finance mechanism used to provide collateral security without triggering a change in share ownership or management control. By opting for an NDU, the promoters avoid the technical