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Lloyds Engineering Works Limited (LEWL) has announced a significant strategic move, with its Board of Directors approving the merger by absorption of three group entities: Lloyds Infrastructure & Construction Limited (LICL), Metalfab Hightech Private Limited (MHPL), and Techno Industries Private Limited (TIPL). This consolidation aims to transform LEWL into a comprehensive engineering and infrastructure solutions provider, integrating design, manufacturing, and execution capabilities under one umbrella.

The merger is expected to create a unified engineering and infrastructure company that can leverage LICL’s order book of over ₹4,500 crore and its project execution capabilities. The combined entity will benefit from an expanded asset base, enhanced technical and financial capabilities, improved operational efficiency through the elimination of redundant functions, and greater economies of scale leading to cost synergies. The amalgamation is also projected to strengthen the company's financial standing with a larger net worth and improved access to capital.

The transaction is a related party transaction, involving subsidiaries and an associate company, and is being conducted on an arm's length basis. Valuations for the merger have been pegged at ₹2,849 crore for LICL and ₹317 crore for Metalfab. LEWL will issue approximately 38.1 crore new shares to the shareholders of the merging entities, increasing its total equity base to 185.52 crore shares. Post-merger, Mr. B Prabhakaran and Family will hold a 21.03% stake. The merger is effective from April 1, 2025, and is subject to necessary statutory and regulatory approvals from authorities including the NCLT and CCI.

The combined entity, as of H1FY26, commands a pro-forma order book of approximately ₹6,150 crore. The company's management anticipates this merger will enable a 4x revenue growth target in FY25.