Rs 1,278.13 Crore Order Book: Board of This Multibagger Penny Stock Under Rs 65 Approves Rs 987.26 Crore Rights Issue, 9:34 Entitlement Ratio At Rs 32 Per Share
The stock price gave multibagger returns of 339 per cent in 3 years and a whopping 17,500 per cent in 5 years.
On April 21, 2025, Lloyds Engineering Works Limited (LEWL) announced that its Board of Directors has approved raising capital through a Rights Issue of equity shares. The decision was made during a meeting on July 30, 2024, with the terms of the issue finalised on April 17, 2025. The total size of the Rights Issue is approximately Rs 987.26 crore. The issue comprises 30,85,17,476 partly paid-up equity shares. This will increase the company's paid-up share capital by 20.93 per cent on a post-Rights Issue basis.
The Rights Equity Shares are priced at Rs 32 each, with Rs 16 payable upon application. The remaining balance is due in one or more calls on or before March 31, 2026. The record date for determining shareholder eligibility is Monday, April 28, 2025. The Rights Entitlement Ratio is 9:34, meaning nine Rights Equity Shares for every 34 fully paid-up equity shares held on the record date. The Rights Issue opens on Thursday, May 15, 2025, and closes on Friday, May 30, 2025.
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The funds raised will be used for several strategic purposes, including upgrading and refurbishing existing manufacturing facilities in Murbad, Thane; funding the acquisition, refurbishment, and overhauling of Bhilai Engineering Corporation Limited (BECL) assets; augmenting Techno Industries Pvt Ltd capabilities and working capital; and for general corporate purposes. India Ratings will monitor the utilisation of funds.
FY25 has been a significant year for LEWL, marked by technological collaborations with The Material Works Ltd (USA), TB Global Technologies Ltd (Japan), and Fincantieri S.p.a. (Italy). Strategic acquisitions include the engineering division of Bhilai Engineering Corporation Ltd (BECL), a 77 per cent stake in Techno Industries Pvt Ltd, and the acquisition of 63 acres of land near Nagpur.
About Company
The company provides engineering and manufacturing solutions for industries like HydroCarbon, Oil & Gas, Power, and Steel. In Quarterly Results Q3FY25, Lloyds Engineering reported a 14.04 per cent growth in revenue and a 32.48 per cent increase in operating profit year-on-year. The net profit rose by 24.37 per cent, aided by project execution efficiency and scale advantages.
Despite a 19.87 per cent YTD decline, the stock has gained 13.43 per cent over the past 12 months. On April 17, 2025, the stock climbed 2.41 per cent intraday, touching Rs 62.99 on the NSE, continuing a four-day green streak. The company’s order book stood at Rs 1,278.13 crore as of December 31, 2024, reflecting strong business momentum.
In FY24, the company posted a revenue of Rs 624.24 crore, reflecting a growth of 99.69 per cent compared to Rs 312.61 crore in FY23. The net profit stood at Rs 79.84 crore, marking a growth of 116.84 per cent from Rs 36.82 crore in FY23.
The current market price of the stock is Rs 62.1, with a market capitalisation of Rs 7,285 crore. As of December 2024, the order book stands at Rs 1,278.13 crore. The stock is up 17.68 per cent from its 52-week low of Rs 50.33 per share. The stock price gave multibagger returns of 339 per cent in 3 years and a whopping 17,500 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.