Lloyds Engineering Works Ltd moves to reshape its capital structure

The total call-money collection cannot be quantified from the final-reminder filing extracts. The notice confirms only that it seeks payment of the First and Final Call from holders of unpaid partly paid-up rights shares, during 7 September–6 October 2026; it does not state the number of outstanding partly paid shares or the per-share call amount needed to calculate the gross quantum ^{[1] [2]}.

The filing also references the Letter of Offer dated 19 April 2025, but the specific objects of that Rights Issue—such as project capex, working-capital funding, or debt repayment—are not reproduced in the cited material ^[3]. Accordingly, the inflow cannot be matched reliably to a particular capex or debt-reduction objective.

Analytical implication: this is a potential equity-capital inflow, but the actual cash collection will depend on shareholder response before the deadline. Non-payment can lead to forfeiture, including amounts already paid, so the reminder does not by itself establish either the final proceeds or their availability for capital allocation ^[2]. A precise alignment assessment requires the outstanding call shares, the per-share call amount, and the Objects of the Issue section of the original Letter of Offer.

Current partly paid-up shares: The aggregate number of partly paid-up equity shares currently outstanding is not stated in the forfeiture notice; it identifies the affected holders but does not provide a total share count. ^[3]

Forfeiture timeline and stated process

• 27 August 2026: The Securities Issue Committee approved issuance of the Last and Final Reminder-cum-Forfeiture Notice-2. ^[2]
• 1 September 2026: The notice was issued and advertised in newspapers. ^[1]
• 7 September 2026: The payment window for the First and Final Call opened. ^[2]
• 6 October 2026: This was the final date for payment of the call money together with applicable interest. ^[3]
• After non-payment by the deadline: The partly paid-up shares become liable to forfeiture, including the amounts already paid on them and the dividend adjusted on them. The notice states that forfeiture will be carried out in accordance with the company’s Articles of Association and the Letter of Offer dated 19 April 2025. ^[2]

The notice and payment slip were made available on the company’s rights-issue webpage, and shareholders could obtain payment clarification through the stated helpline or email. ^{[3] [3]}

Important qualification: The cited notice states that the forfeiture will follow the Articles of Association but does not reproduce the Articles’ detailed procedural steps—for example, the formal board action, any additional notice or grace period, or the effective date and post-forfeiture treatment. Accordingly, the binding, specifically disclosed timeline is the 7 September–6 October 2026 payment window; the exact internal forfeiture mechanics require the relevant Articles and the full forfeiture notice.

The fully paid-up equity share capital is projected to increase by Rs 11.36 Crores, from Rs 132.58 Crores to Rs 143.94 Crores. This corresponds to the second call of Rs 0.50 on 22,72,47,052 partly paid shares; the company reported the same capital movement upon their conversion to fully paid shares on 11 March 2026 ^[4].

EPS impact

• Before the call, these shares would generally contribute to the EPS denominator on a partly-paid basis—effectively 0.5 share per share if their dividend entitlement matched the amount paid.
• After the call and conversion, each share is counted as one fully paid share from the effective conversion date.
• Therefore, the incremental denominator for a full subsequent quarter would be approximately 11,36,23,526 equivalent shares versus the prior partly-paid treatment—not the full 22,72,47,052, because half of the economic share count was already represented.
• For the quarter containing 11 March 2026, the increase would be time-weighted. Assuming 11 March was the effective date and a 90-day March quarter, the incremental weighted-average denominator would be approximately 2,65,12,156 equivalent shares, calculated as 11,36,23,526 × 21/90. This is a derived estimate.

Accordingly, reported EPS in the upcoming quarterly financials may be diluted because the denominator rises, although the exact impact cannot be quantified without the company’s existing weighted-average share count, profit attributable to equity holders, and the legally effective conversion date.