Lloyds Enterprises Restructures Real Estate Portfolio, Plans Demerger into Lloyds Realty
Lloyds Enterprises Limited has announced a comprehensive strategic restructuring plan designed to unlock shareholder value in its rapidly expanding real estate business. The board of directors approved a composite scheme of arrangement on December 22, 2025, that will reshape the company's corporate structure through strategic mergers and demerger, creating focused business entities with substantial growth potential.
The restructuring will position Lloyds Realty Limited as an independent entity with a massive development pipeline in the Mumbai Metropolitan Region. The company has secured significant land assets across prime locations with exceptional revenue generation potential. The future projects hold a revenue potential of more than ₹7,000 crores in the coming years, representing Lloyds Realty Limited's share of the development pipeline. The total developable potential exceeds 13 million square feet over the next five years.
The approved scheme involves a two-pronged approach combining merger and demerger activities. The merger component includes the consolidation of Lloyds Realty Developers Limited and Indrajit Properties Private Limited into Lloyds Enterprises Limited. Simultaneously, the company will demerge its Real Estate Business Undertaking into the newly formed Lloyds Realty Limited. Indrajit Properties Private Limited contributes substantial liquidity with reserves exceeding ₹300 crores, which will significantly fortify the balance sheet of the newly listed entity.
The scheme establishes specific share exchange ratios designed to provide proportionate participation for all stakeholders. Equity shareholders of Lloyds Realty Developers Limited will receive 43 fully paid-up equity shares of ₹1.00 each in the transferee company for every 350 shares held. For the demerger component, shareholders of Lloyds Enterprises will receive 1 fully paid-up equity share of ₹1.00 each in Lloyds Realty Limited for every 2 shares held. The demerger is built on a mirror-image shareholding structure, ensuring that every Lloyds Enterprises shareholder, including those holding partly paid-up shares from the recent Rights Issue, will receive a proportionate stake in the new entity.
The restructuring represents a definitive commitment to strategic clarity and shareholder value creation. By decoupling the high-growth real estate business from core steel trading operations, the company enables business-specific capital allocation and specialized management attention. The separation allows for operational agility, focused capital deployment, and strategic clarity to maximize development potential. The transaction has been structured as a related party transaction on an arm's length basis, with independent valuation and fairness opinion ensuring transparency and regulatory compliance.
The scheme requires comprehensive regulatory approvals including National Company Law Tribunal approval, stock exchange and SEBI clearances, and majority approval from public shareholders. The company will seek listing for Lloyds Realty Limited on BSE Limited and National Stock Exchange of India Limited following the completion of all regulatory requirements. The regulatory timeline includes stock exchange and SEBI approvals in Q1 FY27, shareholder and creditor consent in Q2 FY27, and final scheme implementation in Q4 FY27.
Lloyds Enterprises Limited is a diversified conglomerate with a strong presence in the steel trading and real estate sectors. The company's strategic restructuring is aimed at unlocking the full potential of its real estate portfolio and ensuring sustainable growth for all stakeholders.
