Elecon Engineering Co.Ltd. — Capital/Financing Update 2018

Dec 20, 2018

Date: zo- December, 2018

To,

TheManager(Listing),TheBSELtd.Mumbai	TheManager(Listing),NationalStockExchangeofIndiaLtd.Mumbai
Company's	Company's
Scrip	Scrip
Code:	Code:
505700	ELECON

Sub Outcome of Committee Meeting of the Board of Directors convened on 20th December, 2018

Ref Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

We hereby inform you that in terms of the regulation referred to above and pursuant to the meeting of the Board of Directors of the Company dated 10th December, 2018 and the resolution of the Shareholders of the Company dated 4th August, 2014; a Committee Meeting of the Board of Directors of the Company ('Management Committee') held today i.e. on Thursday, 20th December, 2018, approved the salient terms and conditions for the proposed issue of secured, rated, listed, redeemable non-convertible debentures for an aggregate amount of upto Rs. 150 crores ("Debenture Amount") in one or more series with multiple tranches on a private placement basis in accordance with the applicable law. A summary of the salient terms is set out in Annexure - A hereto.

You are requested to take note of the same for your records.

Thank you.

Yours faithfully, For Elecon Engineering Company Limited,

~

Bharti Isarani Company Secretary & Compliance Officer

Encl.: As.above

Gearing industries. Gearing economies.

ELECON ENGINEERING COMPANY LIMITED, Post Box # 6, Vallabh Vidyanagar - 388120, Gujarat. India. Tel.: +91 - 2692 - 238701, 238702. Fax: +91 - 2692 - 227484. CIN L29100GJ1960PLC001082 I infogear@elecon.com I www.elecon.com

Annexure-A

Salient Terms and Conditions of Proposed issue. of Non-Convertible Debentures

SecurityName	Secured,Rated,Listed,RedeemableNon-ConvertibleDebentures(NCDs)
Sizeoftheissue	UptoRs.150 crores-tobedisbursedinoneormoreseriesandtranchesofserieswiththefirsttrancheofsuchNCDsbeing900debenturesoffacevalueofRs.10 lakhseachintwoseriesaggregatingtoRs.90 croresasfollows:-ThefirstseriesforanaggregateamountofRs.30crores("SeriesI");-ThesecondseriesforanaggregateamountofRs.60crores("SeriesII")
Listing	ProposedtobelistedonBSELtd.
TenureoftheInstrument	SeriesI-36monthsSeriesII-60months
DateofAllotment	Tobedetermined
DateofMaturity	36monthsand60monthsfromthedeemeddateofallotmentofSeriesIandIIrespectively.
Interest/CouponRateandScheduleofpaymentofinterest	SeriesIandII:-Rateofinterest/coupon:-12.25% perannum-ScheduleofpaymentofInterest:-1st February,1st May,1st1stNovemberAugustandofeachcalendaryear
SecurityandotherCreditEnhancementfortheDebentureAmount	SecurityforProposedNCDsuptoRs.150 Crores:-1.SpecificimmovablepropertyownedbytheCompanyandoneofthepromotercompanies.Specificmovableplantandmachineryownedbythe2.Company.Residualchargeovercurrentandfixedassetsofthe3.CompanyCorporateGuaranteefromoneofthepromoter4.Companies;andSuchothersecurityand/orcreditenhancementasmay5.berequiredbytheinvestorsandreferredtointhedefinitiveagreementstobeenteredintowiththedebenturetrusteeonbehalfofthedebentureholders.
Specialright/interest/privilegesattachedtothenon-convertibledebentures	No

inDelaypaymentof	NotApplicable
/principalinterest
amountforaperiodof
morethanthreemonths
thefromduedateor
indefaultpaymentof
interest/principal
Detailsofanyletteror	NotApplicable
regardingcomments
payment/non-payment
ofinterest,principalon
duedates.
DetailsofRedemptionof	RedemptionatPremium
Debentures