Metal stock engaged in the business of mining iron ore, manufacturing sponge iron, and generating power in focus after Quant Mutual Fund subscribes to equity shares of the company through QIP. 

Price Action 

With a market capitalization of Rs. 38,4400 Crores, the shares of Lloyds Metals and Energy Limited were trading at Rs. 760.80 per equity share, up 0.05 percent from its previous day’s close price of Rs. 760.40. 

What Happened 

Regarding its earlier intimation to raise funds through Qualified Institutional Placement(QIP), it has announced the closure of the QIP by successfully raising funds of Rs. 1,218 Crores from qualified institutional buyers. 

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Also, the board of directors of the company has determined and approved the allocation of 1.75 Crore equity shares at an issue price of Rs. 696 which is at a discount of Rs. 36.08 per Equity Share i.e. 4.93 percent to the floor price of Rs. 732.08 per Equity Share 

Out of the allottees who have subscribed to the Qualified Institutional Placement, Quant Mutual Fund has subscribed to 29.71 percent of the QIP by acquiring 52 Lakh equity shares of the company. 

The proceeds from the QIP will be utilized for setting up a 4 MTPA pellet plant at Konsari, Maharashtra along with an iron ore and grinding unit, primarily for the production of blast furnace and DRI grade pellets, in line with our business strategies and growth plans to achieve forward integration. 

Furthermore, subject to the approval of thr Shareholders at the EGM proposed to be held on July 29, 2024, and appropriate authorities, the Board of Directors at their meeting held on July 4, 2024, have also decided to issue and allot 4.00 crore convertible warrants of the Company on a preferential basis at a price of Rs. 740.00 each 

About the company 

Lloyds Metals and Energy Limited is engaged in the business of mining iron ore, manufacturing sponge iron, and generating power. Its by-products include char, fly ash, bed materials, electrostatic precipitators (ESP) dust, and iron ore fines 

Its revenue from operations grew by 94 percent from Rs. 3,353 Crores in FY23 to Rs. 6,522 Crores in FY24, accompanied by a loss of Rs. 289 Crores to a profit of Rs. 1,243 Crores.

In terms of Return ratios, it has reported a return on equity (ROE) of 57.3 percent, and a return on capital employed (ROCE) of 79.2 percent. It has reported a debt-to-equity ratio of 0.01. 

Written by: Bharath K.S


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