Lloyds Engineering Works Right Issue 2023

Lloyds Engineering Works is  engaged in the design and manufacturing of heavy equipment, machinery and systems for hydrocarbon, steel and power sectors, nuclear plant boilers, and turnkey projects. The company participates regularly in the tenders of various public and private companies, the Indian Navy, ports, etc. In FY 2023, they secured sales worth ₹313 crore and a profit after tax of ₹37 crore.

Lloyds Engineering Works is conducting its rights issue, starting from December 26, 2023, to January 10, 2024. Under the rights issue, shareholders can receive 1 share for every 17 fully paid-up shares that they hold on the record date. The price is set at ₹15.5 per share, which is roughly 33.05% of the market price of ₹46.9 as of December 14, 2023. The lower price is offered to attract applications and to compensate the shareholders for the fall in share price.

Important Details of the Lloyds Engineering Works Rights Issue 2023

How to Apply for the Rights Issue?

Assume you own the stock of a company which has announced a rights issue. You will immediately receive a message via email from Angel One, notifying you of the same. The email will include information related to the rights issue, such as the entitlement ratio, record date, etc. Thereafter, you will receive another email from us reminding you of the same around 1 week before the opening date.

If you own shares of the company offering rights issue, you will receive a rights entitlement (RE) in your demat account before the opening of the rights issue. This entitlement can thereafter be used to apply for the rights shares. However, the rights entitlement will expire if it is not used for the application within the given time period.

If you are an Angel One user and own a stock that has announced a rights issue, you will receive an email from Angel One with the details of the rights issue and the steps to apply for it. There are 2 ways to apply for a rights issue:

1. Online ASBA

You can apply via net banking through an Applications Supported by Blocked Amount (ASBA) process if your bank supports it. To support it, your bank must be a Self-Cerified Syndicate Bank. Take the following steps:

1. Make sure you are eligible for the issue and have adequate shares and funds.
2. Visit the bank’s website.
3. Find the rights issue option.
4. Enter the quantity you want to buy and submit the application form.

2. Offline ASBA

If you want to apply offline, you must submit the filled form at the Self-Certified Syndicate Bank (SCSB) branch. You can also download the application form from the BSE and NSE websites.

Things to Remember

1. Once you have blocked an amount in your account for the rights issue, you cannot use it for any other purpose. However, if the shares are not allocated to you, the amount will be unblocked.
2. You can sell your rights to an issue via the open market through a rights entitlement trading platform of the exchange or via an off-market transaction. This action is called the renunciation of rights. You can also choose not to buy further shares.

Lloyds Engineering Works’s Current Shareholding

As of October 2023, Lloyds Engineering Works’s top promoter was Shree Global Tradefin Ltd. This company owned 43.58% of the company, while 39.66% was owned by the public.

Final Words

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