Newsletter
Lloyds Engineering Works acquired a majority stake in Steel Infra Solutions Company for ₹1,073 crore.
Note: this marks one of the largest deals in the engineering and infrastructure space this year.
What’s going on: Lloyds will pay partly in cash and partly by giving its own shares to SISCOL shareholders. Lloyds Engineering will directly buy a 52.16% stake for about ₹635 crore, while Lloyds Enterprises and Streamland Estate will buy the remaining stake through cash payments.
To complete the share-swap part, Lloyds Engineering will issue up to 7.06 crore new shares at ₹71.25 each to SISCOL shareholders.
The why: Lloyds already works in engineering and manufacturing solutions. By buying SISCOL, it gets deeper access to heavy steel fabrication, which is basically the making of large steel structures used in airports, stadiums, factories, energy projects and other big infrastructure work.
This helps Lloyds move from just engineering work to larger turnkey and EPC projects.
SISCOL also brings real project experience. It has worked on major projects like Delhi Airport Terminal 1, Noida International Airport, Dwarka Convention Centre and the International Hockey Stadium in Rourkela.
Big theme: India is in the middle of a massive infrastructure buildout. The government has increased capital expenditure from around ₹3 lakh crore in FY20 to over ₹11 lakh crore in FY26, driving demand for steel structures used in airports, metro systems, bridges, factories, data centres and energy projects.
The company currently consumes around 150 million tonnes of steel annually, but the National Steel Policy targets 300 million tonnes of steel production capacity by 2030.
As the country builds more roads, railways, airports and industrial corridors, demand for heavy steel fabrication and infrastructure solutions is expected to grow sharply.
