| Company | Value | Change | %Change |
|---|
The company will pay ₹70 crore upfront to acquire this 79.82% stake and will also issue guarantees worth ₹4,960 crore to Thriveni Earthmovers and Infra Pvt. Ltd. (TEIL). These guarantees include redeemable preference shares (RPS) worth ₹2,160 crore and ₹2,800 crore worth of debt obligations.
TEIL, which represents the mine development and operations (MDO) business of Thriveni Eartmovers, and has a strong mining portfolio, will be servicing this debt.
Thriveni Earthmovers holds a 19.13% stake in Lloyds Metals as of the September quarter and is classified as a promoter in the shareholding pattern of the company.
TEIL reported an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹932 crore. For financial year 2025, it is likely to report an EBITDA of ₹1,380 crore, which is likely to increase to ₹3,138 crore by financial year 2028.
| TEIL Projections By LMEL | EBITDA (₹ Crore) |
| FY24 | 932 |
| FY25e | 1,380 |
| FY26e | 2,800 |
| FY27e | 3,446 |
| FY28e | 3,138 |
Brokerage firm Equirus believes that this deal is “highly beneficial” for the minority shareholders of Lloyds Metals and Energy, citing the limited upfront payment of ₹70 crore and the servicing of debt through TEIL’s own cash flows.
“Furthermore, the acquisition grants Lloyds Metals full access to TEIL’s MDO operations, establishing a platform to participate in future MDO projects,” the brokerage said.
Post financial year 2028, Equirus expects Lloyds Metals shareholders to realise a potential value accretion of ₹28,000 crore, assuming TEIL achieves an EBITDA of ₹3,000 crore, valued at a multiple of 8 times.
Equirus has a “buy” recommendation on Lloyds Metals and Energy with a price target of ₹1,200. All four analysts who have coverage on the stock have a “buy” rating.
Shares of Lloyds Metals and Energy ended 2.2% higher on Wednesday at ₹1,179. The stock is at a 52-week high.
First Published: Dec 19, 2024 8:33 AM IST
