Elgi Equipments Ltd. — Capital/Financing Update 2019

Dec 16, 2019

t:LLI -· �-[® ]

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

E:SEC: 1016

DATE: 16/12/2019

Dear Sirs

Sub: Disclosure pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

This is to inform that the Board of Directors at their meeting today, approved the following;

1. Acquisition of 100% shareholding and control of Michigan Air Solutions LLC, a Limited Liability Company headquartered in State of Michigan, USA. This acquisition will be accomplished through ELGi Compressors USA, Inc, a wholly owned subsidiary of Elgi Equipments Limited ("Elgi"). More details of the target entity are provided in Annexure I.

2. Subject to the approval of members, the Board of Directors has approved Elgi Equipments Limited Employees Stock Option Plan 2019 ('Elgi ESOP 2019') providing for grant up to 15,84,045 Options (not exceeding 1 % of the equity shares), to employees of the Company, its holding and subsidiary companies.

3. Implementation of Elgi ESOP 2019 through a trust to be formed for the purpose and advancement of loan by the Company to the trust for purchasing shares from the secondary market.

4. Postal Ballot Notice for seeking of approval of shareholders of the company for Elgi ESOP 2019.

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

Thanking you,

Yours faithfully

For ELGI EQUIPMENTS LIMITED J , t� , NITHY A PRABHU R 'JJ lMAcf _O_ COMP ANY SECRET ARY

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ELGI EQUIPMENTS LIMITED

T : +91 422 2589 555, W :www.elgi.com, Toll - free No : 1800-425-3544, CIN : L29120TZ1960PLC000351 Trichy Road, Singanallur, Coimbatore - 641005, Tomilnodu, India

-t:LLI.·[® ]

Annexure I: Details of the Target Entity:

	Annexure I: Details of the Target Entity:
	Name	Michigan Air Solutons LLC, USA ("MAS")
	Turnover (2018)	USD 11 Million
	Whether the acquisiton would fall within	MAS is an independent company.
	related party transactons and whether the
	promoter / promotergoup /goup	The promoter/ promoter group/ group
	companies have any interest in the entty	companies do not have any interest in the
	beingacquired	enttbeingacquired.
	Industy to which the entty being acquired	Distributor and specialist in air compressor
	belongs	sales,maintenance and services.
	Objects and effects of acquisition (including	T his acquisition will significantly expand
	but not limited to, dsclosure of reasons for	Elgi' s footprint in the State of Michigan, USA.
	acquisiton of target entity, if its business is
	outside the main line of business of the listed
	entit)
	Brief details of any governmental or	None
	regulatory approvals required for te
	acquisiton
	Indicatve time period for completon of te	16tDecember 2019
	acquisiton
	Nature of consideraton - whether cash	Cash Consideraton
	consideraton or share swap and details of the
	same
	Cost of acquisition or the price at whch te	The total consideraton for te acquisiton is
	shares are acquired	Approx. USD 6 Million.(INR 42.44 Crores)
	Percentage of shareholding / contol acquired	Acquisition of 100% of the shareholding &
	and / or number of shares acquired	contol through ELGi Compressors USA, Inc, a
		whollyowned subsidiarof Elgi.
	Brief backgound about the entity acquired in terms of products/line of business acquired,	MAS headquartered i Grand Rapids, Michgan, was established in te year 2009.
	date of incorporation, history of last 3 years	MAS holds significant market share in Grand
	turnover, county in which the acquired entty	Rapids and also has presence in Detoit market
	has presence and any other significant	since 2016.
	informaton
		MAS has twooffices. The main office is in
		Grand Rapids, Michigan. The satellite office is
		in Plymout, Michigan, a suburb of the Detroit
		meto area. MAS serves all countes in the
		Lower Peninsula of Michigan, whch
		represents94%ofthetotalstatemarket
		potental.
		Sales in the first full year of trading were 0.87
		Million USD and i 2018 passed the 11 Million
		USD mark. The company has had consistent
		growth over its 10 years of trading. Target
		revenue for financial year 2019 was set at 12
		Million USD .

..[.. ] . . � Company . � Secretary \ NIT YA PRABHU. R For ELGI EQUIPMENTS LIMITED Trichy Rood, Singanallur, Coimbatore - 641005, Tamilnadu, India T: +914 22 25 89 555, w :www.elgi.com, Toll - free No: 1800·425-3544, CIN: L29120TZ1960PLC000351 ELGI EQUIPMENTS LIMITED

ELGI EQUIPMENTS LIMITED