Lloyds Engineering clears consolidation of infrastructure and fabrication arms

Lloyds Engineering Works Ltd on Monday said its board has approved a scheme of amalgamation involving Lloyds Infrastructure & Construction Ltd, Metalfab Hightech Pvt Ltd and Techno Industries Ltd with Lloyds Engineering Works Ltd.

According to the regulatory filing, the proposed merger is aimed at consolidating the group’s infrastructure, engineering and fabrication businesses under a single listed entity. The scheme is expected to simplify the corporate structure and improve operational and administrative

efficiencies.

LICL reported an EBITDA margin of 16.2% and a profit after tax of nearly ₹100 crore in the six months ended September. The company has also diversified beyond industrial EPC by securing a road project worth over ₹340 crore.

Metalfab Hightech, another group entity, has been a high-margin contributor, reporting an EBITDA margin of 21.65%, reinforcing the group’s operational efficiency.

The company said further details, including the appointed date and implementation timeline, will be determined following receipt of the necessary approvals.

The company said the proposed consolidation will enable deeper vertical integration across the engineering, manufacturing and infrastructure value chain. This, it noted, will allow Lloyds Engineering to bid for and execute larger, multi-disciplinary contracts while capturing value across the entire project lifecycle.

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Following the merger, the unified entity will have a combined order book of about ₹6,150 crore, offering long-term revenue visibility across manufacturing and infrastructure projects.

Commenting on the development, Shree Krishna Gupta, Whole Time Director of Lloyds Engineering Works Ltd, said the merger is aimed at building an integrated solutions platform rather than just scale.

“With a combined order book exceeding ₹6,100 crore and a unified balance sheet, we are now in our strongest position ever to deliver growth,” Gupta said.

Shares of Lloyds Engineering Works Ltd closed at ₹56 on the BSE on Monday, down 0.23%.