Lloyds Engineering Works is acquiring an 88.12% stake in Steel Infra Solutions (SISCOL) for ₹1,073.40 crore. This move aims to create an integrated engineering and fabrication platform, targeting over ₹10,000 crore revenue by FY29-30.

Lloyds Engineering Acquires 88.12% Stake in SISCOL for ₹1,073 Crore

Lloyds Engineering Works Ltd (LEWL) has announced the acquisition of an 88.12% stake in Steel Infra Solutions (SISCOL) for a total consideration of ₹1,073.40 crore. The company plans to integrate SISCOL's expertise to become a fully integrated engineering, fabrication, and EPC platform.

Reader Takeaway: Transformation through acquisition plus integration challenges.

What just happened

Lloyds Engineering Works has agreed to acquire a significant majority stake of 88.12% in SISCOL. The total transaction value stands at ₹1,073.40 crore. This strategic move is expected to bolster LEWL's capabilities in the engineering and construction sector.

Why this matters

The acquisition is poised to transform LEWL into a comprehensive EPC platform. By combining LEWL's existing strengths with SISCOL's specialized knowledge in structural steel design, fabrication, and erection, the company aims to enhance its capacity to undertake larger and more complex infrastructure projects. The combined entity will boast a structural fabrication capacity of approximately 150,000 MTPA, with plans to expand to 200,000 MTPA.

The backstory

SISCOL, the target company, has a profitable track record. For the financial year ending March 2026 (FY26), SISCOL reported revenues of ₹816.87 crore, an EBITDA of ₹92 crore, and a net profit of ₹43.42 crore. It also holds an order book of ₹1,134 crore.

What changes now

LEWL's management expects the integration of SISCOL to enable the company to bid for larger, integrated projects more effectively. The company has set an ambitious target of achieving revenues exceeding ₹10,000 crore by FY29-30. To finance the acquisition and capital needs, LEWL is undertaking a preferential allotment of shares. This includes issuing equity shares at ₹71.25 per share to SISCOL shareholders and also to Prime Securities Limited. Additionally, the company has approved borrowing limits of up to ₹1,000 crore.

Risks to watch

Investors should monitor the potential increase in debt levels due to the approved borrowing limit of ₹1,000 crore and its impact on the company's balance sheet. Furthermore, the success of this strategic integration hinges on effective execution, particularly in merging procurement, engineering, and design resources to realize operational synergies.

Peer comparison

This acquisition places LEWL in a stronger position within the competitive EPC and infrastructure sector, allowing it to vie for larger contracts against established players. The increased fabrication capacity will be a key differentiator.

Context metrics (time-bound)

• Target FY26 Revenue (SISCOL): ₹816.87 Crore
• Target FY26 EBITDA (SISCOL): ₹92 Crore
• Target FY26 Net Profit (SISCOL): ₹43.42 Crore
• Target Order Book (SISCOL): ₹1,134 Crore
• Acquisition Stake: 88.12%
• Total Consideration: ₹1,073.40 Crore
• Future Revenue Target: >₹10,000 Crore by FY29/30
• Proposed Borrowing: Up to ₹1,000 Crore

What to track next

Key events to monitor include the Extra Ordinary General Meeting scheduled for July 15, 2026, to gain shareholder approval for the acquisition and share issuance. The cut-off date for e-voting is July 8, 2026. The company also intends to file a Draft Red Herring Prospectus for SISCOL's listing within 30 months post-transaction completion.