The shares of this engineering company clock a 5 percent upper circuit after the board considered and approved the right issues of equity shares for up to worth Rs. 99.9 crores.
With a market capitalisation of Rs. 5,306 crores, the shares of Lloyds Engineering Works Ltd started Monday’s trading session positively at Rs. 49.15. Within a few minutes of the opening bell, the shares hit a 5 percent upper circuit at Rs. 49.15.
Such bullish movement in the price was observed after the board of directors considered and approved raising funds through the Right issues. The issue size is decided up to 6,34,64,610 fully paid-up Equity Shares each for an amount up to Rs. 99.9 crores. The right issue price is set at Rs. 15.50 per fully paid-up Equity Share at a face value of Rs. 1 each.
The company’s board approved and recommended the issue in the ratio of 1:17, i.e., in this case, 1 Rights Equity Share for every 17 Equity Shares held by an Eligible Equity shareholder. For the same, the record date is set on, December 14, 2023, designated for the purpose of determining the existing equity shareholders entitled to receive the Rights Entitlement in the Rights Issue.
Coming onto the company’s financial statements, the revenue increased by around 8 percent from Rs. 113 crores in the June quarter to Rs. 122 crores in the September quater. In addition, the net profit zoomed by 46 percent from Rs. 13 crores to Rs. 19 crores during the same timeframe.
As of September 30, 2023, the order book of the company stood at Rs. 921.4 crores, marking a growth of 174 percent YoY, with a fresh order of Rs. 212 crores during Q2 FY24. The company aims to grow the order book much faster, considering the growth visible in the CAPEX cycle across Industries. The company has spent Rs. 40 crores on capacity expansion in FY23. Further, It plans to spend Rs. 50 crore during FY24 to increase capacity.
Headquartered in Mumbai, Lloyds Engineering Works Ltd was incorporated in 1996. The company is primarily engaged in the design, Manufacturing, and Commissioning of heavy equipment, machinery & systems for the HydroCarbon Sector, oil and gas, Steel Plants, Power Plants, Nuclear Plant Boilers, and Turnkey Projects.
Written By Vaibhav Patil
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