Madhu Kela to get 73 lakh Lloyds Engineering shares in SISCOL deal

Madhu Kela, the veteran value investor, is set to become a shareholder in Lloyds Engineering Works as part of the company's acquisition of SISCOL. Kela will receive nearly 73 lakh shares in Lloyds Engineering as consideration for his stake in SISCOL, the company said in a regulatory filing.

The transaction values SISCOL at an enterprise value of roughly INR 200 crore. Kela held a 49% stake in SISCOL through his investment vehicle. The acquisition gives Lloyds Engineering control of SISCOL's manufacturing unit in Gujarat, which produces engineering components for the automotive and industrial sectors.

Lloyds Engineering will issue equity shares to Kela at a price of INR 42.50 apiece, the filing showed. At that price, the 73 lakh shares are worth about INR 31 crore. The shares will be locked in for 18 months from the date of allotment.

The deal is expected to close by the end of the current fiscal year, subject to shareholder and regulatory approvals. Lloyds Engineering shares closed at INR 54.20 on the BSE on Thursday, up 2.5% on the session.

Kela is known for his long-term bets on small and mid-cap companies. He previously held positions in stocks such as Infosys and Wipro, though his current portfolio is not publicly disclosed. The SISCOL acquisition gives Lloyds Engineering a foothold in the precision-engineering segment, which has seen steady demand from auto ancillaries.

Lloyds Engineering reported revenue of INR 412 crore for the year ended March 2024, with net profit of INR 28 crore. The company's order book stood at INR 680 crore as of December 2024.