Elgi Equipments Ltd. — Capital/Financing Update 2019

Jun 20, 2019

t:LUI™ -- --

BOMBAY STOCK EXCHANGE LIMITED	NATIONAL STOCK EXCHANGE OF INDIA
PHIROZE JEEJEEBHOY TOWERS	LIMITED
DALAL STREET	"EXCHANGE PLAZA"
MUMBAI - 400001	BANDRA KURLA COMPLEX
	BANDRA (E)
	MUMBAI - 400051
Scrip Code: 522074	Scrip Code: ELGIEQUIP

E:SEC: 1020

DATE: 20/06/2019

Dear Sirs

Sub: Intimation of incorporation of Elgi Gulf Mechanical and Engineering Equipment Trading LLC in UAE by Elgi Gulf FZE, wholly owned subsidiary of the Company, as a joint venture with a local Emirati.

This is to inform you that Elgi Gulf FZE, a wholly owned subsidiary of the Company, has incorporated a company by the name, and proposes to subscribe and invest in an extent of 1,47,000 UAE Dirhams constituting 49% of the total capital of, Elgi Gulf Mechanical and Engineering Equipment Trading LLC.

The details as required under SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 read with SEBI Circular No. CIR/ CFD / CMD / 4/ 2015 dated September 09, 2015 are given in Annexure-A.

Kindly acknowledge the receipt of this letter and update your records.

Thanking you,

Yours faithfully

For ELGI EQUIPMENTS LIMITED

VAIBH��

COMPANY SECRETARY

==> picture [75 x 73] intentionally omitted <==

ELGI EQUIPMENTS LIMITED

Trichy Road, Singanallur, Coimbatore - 61. l OOS, Tomiinodu, Indio T- : +91 Ll22 2589 555, W :www.elgi.com, Toll - free No : 1800-425-3544, CIN : L29120TZ1960PLC000351

Annexure A

-- -· I™ It: LI.I

Name of the Company details in brief such as size, turnover etc.,

Elgi Gulf Mechanical and Engineering Equipment Trading LLC Share capital: 3,00,000 UAE Dirhams

		Holding: Structure:
		MemberHoldingCapital	Type of
		percentagecontribution	Interest
		Faisal Mohamed51%1,53,000	License
		Hassan Abdalla Al-UAEDirhams	partner
		Ali
		United Arab
		Emirates
		Elgi Gulf FZE49%1,47,000	License
		Free zone fromUAE Dirhams	partner
		other Emirate
		Turnover: NIL
Whether the acquisition would fall within		NO.
related party transactions and whether	the	The promoter / promoter group / group companies do not have
promoter / promoter group / group		any interest in the equity being acquired.
companies have any interest in the entity
being acquired
Industry to which the entity being acquired		Engine and Machinery spare parts trading.
belongs		Pumps, engines, valves and spare parts trading.
Objects and effects of acquisition (including		Elgi Gulf Mechanical and Engineering Equipment Trading LLC
but not limited to, disclosure of reasons for		will function as a dealer / distributor for Elgi Gulf FZE, (wholly
acquisition of target entity, if its business is		ownedsubsidiaryofCompany)forthetradingofELGi
outside the main line of business of the	listed	compressors. The object of proposing to acquire 49% ownership
entity)		stake in this company is to facilitate sale of air compressors for
		customers located in United Arab Emirates.
Brief details of any governmental or		None
regulatory approvals required for the
acquisition
Indicative time period for completion of the		Incorporation Completed on 20/06/2019. Subscription and
acquisition		investment in the Capital will happen in due course.
Nature of consideration - whether cash		Cash
consideration or share swap and details of
the same
Cost of acquisition or the price at which the		147,000 UAE Dirhams
shares are acquired
Percentage of shareholding / control		49%
acquired and / or number of shares acquired
Brief background about the entity acquired		Elgi Gulf Mechanical and Engineering Equipment Trading LLC
in terms of products/line of business		was formed as a limited liability company by registering the MOA
acquired, date of incorporation, history	of	and issuance of commercial license by the Department of
last 3 years turnover, country in which the		Economic Development System, UAE, effective 20/06/2019. Mr.
acquired entity has presence and any other		Shyamsunder Pushpagiri Rammohan, Regional Sales Manager-
significant information		UAE, ISAAME - Africa & Middle East will be the Manager of the
		LLC.
ELGI EQUIPMENTS LIMITED-m·1nTnchy Road, S1nganallur, Co1mbatore61!1005,TaIadu,T: +91422 2589 555,W:www.elgi.com,Toll-freeNo:		0��1;;J��..,�(o«;**ForELG! EQUIPMENTS� **VAISAVI.M .1q/Jl,qLLU°i'-•"COMPANY SECRETARYIndia-1800-425-351!1!,CIN: L29120TZ1960PLC000351