Recently, Lloyd considered sharing ownership of the company (mines account for most of the value) with blue-collar employees through stock options. Some of these workers are former Maoists who have laid down their weapons and are seeking a steady income.
Indeed, the company has faced its fair share of resistance since it began operations, including kidnappings of executives and arson by Maoists. However, the company stayed the course and grew its revenue 24 times between FY2021 and FY2024. INR657.5 billion since the start of red dust mining in this area, which will eventually be turned into steel.
Now, in an unprecedented move in the metals and mining industry, Lloyd Metals & Energy made headlines on Thursday for granting stock options to just over 6,000 employees, the majority of them in the mining industry. They earn a decent wage by doing physical labor in the mines. The factory floor. This story was first reported by the Times of India.
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The company granted 42,800 shares as stock options to employees. INR4 pieces each. at market price INRAt $1,340.95 per share as of Thursday’s close, these shares are valued at $1,340.95 per share. INR5.8 billion. Sister company Lloyd Engineering Works also granted significant stock options. INR5.6 billion, as well as unlisted group company Sriveni Earthmover. Co., Ltd.
“Giving ownership of the company to our employees is something we truly believe in,” said Rajesh Gupta, managing director of the company, which has been granting stock options to employees for the past seven years. he added.
“We started with a small group of 10-12 people and extended it to all our white-collar employees two years ago. This year, we also gave stock options to all our blue-collar employees,” said Gupta. added.
Seven years ago, the company established an employee stock ownership plan (Esop) pool of 11 million shares, most of which have been granted to date. There are still about 170,000 shares left in the pool, which are almost worth anything. INRThe current stock price is 23 billion yen.
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Mr. Gupta acknowledges the region’s turbulent social structure, with some 47 employees currently on the company’s roster once taking up arms for Maoist ideology. “But since then, they have laid down their weapons and found jobs working with us,” he says.
Granting stock options to employees is less common in the traditional metals and mining industry than in emerging sectors such as information technology and new-age startups, the company’s experts said.
“Giving options to workers is also not common. This is a move in the right direction and deserves praise,” said Chandrasekhar Sripada, Clinical Professor of Organizational Behavior at the Indian School of Business, Hyderabad. . In the long run. ”
Lloyds Metals & Energy shares rose more than 6%; INROn Thursday, the BSE rose 1,340.95 and the Sensex rose 1.83 per cent. Stock prices have more than doubled in the past year, pushing companies beyond their valuations INR70,000 billion.
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The company plans to expand further into the region, with plans to build a 4 million tonne per year pellet plant and an 85km-long slurry pipeline in Gadshiroli. There are also plans to build a 360,000 tonne per year direct reduction iron unit and a 100 MW power plant in nearby Chandrapur.
Further expansion plans include another 4 million tonne pellet mill at Gadshiroli and a 1.2 million tonne wire rod mill at Chandrapur. The expansion will be financed from internal accruals and is expected to maintain the company’s net debt-free balance sheet.
Analysts at Anand Rati said: “Given the company’s focus on integrating the steel value chain, expanding production capacity, waiving additional premium payments and strategic mine locations near steel manufacturing hubs in neighboring states. , we expect strong momentum going forward,” analysts at Anand Rati said in a research note dated today. November 28th.
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The brokerage firm expects the company to outpace growth in the steel and mining sector, with compound annual growth in EBITDA (earnings before interest, tax, depreciation and amortization) of 65% from FY24 to FY27. I am doing it.
Analysts cited operational risks from the Maoist conflict, potential delays in receiving environmental clearances and fluctuations in iron ore prices as key risks to the stock.
