Elgi Equipments Ltd. — Capital/Financing Update 2020

Jun 9, 2020

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: 1009 DATE: 09/06/2020

Dear Sirs,

• Sub: Intimation of investment in the Joint Venture Company "Compressed Air Solutions of Texas, LLC" by Elgi Compressors USA Inc, wholly owned subsidiary of the Company.
• Ref: Our intimation on formation of "Compressed Air Solutions of Texas, LLC" dated 11th May, 2020.

With reference to and in continuation to our earlier intimation dated 11th May, 2020 on formation of a Joint Venture Company by Elgi Compressors USA Inc, we would like to inform that Elgi Compressors USA Inc, has subscribed and made its first tranche of investment in an extent of $ 20,000 out of the proposed total investment of $ 1,00,000 in Class A and $ 5000 out of the proposed total investment of $ 25000 in Class B, Shares, which represents 50% of the total capital of Compressed Air Solutions of Texas, LLC. Rest of the investment will be made in tranches and will be completed by October, 2020.

Bryan Becker ,the joint venture partner, has also made his first tranche of investment $ 20,000 out of his proposed total investment $ 1,00,000 in Class A Shares, representing 50% of the total capital of Compressed Air Solutions of Texas, LLC. He will not be eligible to participate in Class B Shares.

Elgi Compressors USA Inc and Bryan Becker have made their first tranche of investment in the Share Capital of Compressed Air Solutions of Texas, LLC on 08th June, 2020 and the same date may be considered as the actual date of formation of the Joint Venture between Elgi Compressors USA, Inc and Bryan Becker, and investment in, Compressed Air Solutions of Texas, 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.

Our earlier intimation on 11th May, 2020 on the topic may be considered as being superseded by this disclosure.

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

Thanking you,

Yours faithfully

Annexure A

Name of the Company details in brief such	COMPRESSED AIR SOLUTIONS OF TEXAS, LLC
as size, turnover etc.,
	Registered office: 1500-N Continental Blvd, Charlotte, North
	Carolina 28273, Mecklenburg, USA.
	Proposed Holding Structure:
	Ownership: Class A & B shares (2 Classes, both voting)
	Class	Name	Nature ofholding	ShareCapital	Percentage of
	Class A	ELGi	Member	$1,00,000	holding50%
		Compressor
		s USA Inc
	Class A	Bryan	Member/	$1,00,000	50%
		Becker	Managing
			Partner
	Class B	ELGi	Member	$25000
		Compressor
		s USA Inc
	Class B:
	Preferential Payment of invested capital with preferredreturn (e.g. 8%)No distributions (other than tax distributions) to Class
		A prior to full payment of Class B
	Turnover: NIL
Whether the acquisition would fall within	NO.
related party transactions and whether the		The promoter / promoter group / group companies do not
promoter / promoter group / group	have any interest in the equity being acquired.
companies have any interest in the entity
being acquired
Industry to which the entity being acquired		Capital Goods-Air Compressors and its spares.
belongs
Objects and effects of acquisition (including		Compressed Air Solutions of Texas, LLC will function as an
but not limited to, disclosure of reasons for	exclusive dealer / distributor for Elgi Compressors USA Inc,
acquisition of target entity, if its business isoutside the main line of business of the	(wholly owned subsidiary of Company) for the ELGi rotaryscrew (oil-flooded or oil-free) compressors in the state of Texas,
listed entity)	U.S.A.

Brief details of any governmental or	None
regulatory approvals required for the
acquisition
Indicative time period for completion of the	October 2020
Investment
Nature of consideration – whether cash	Cash – Investment will be made in tranches by both the
consideration or share swap and details of	members.
the same
Cost of acquisition or the price at which the	Elgi Compressors USA Inc, has invested $20,000 under Class
shares are acquired	A and $5000 under Class B shares on 08th June, 2020 being the
	first tranche of investment out of the total investment of $
	125,000
Percentage of shareholding / control	50%
acquired and / or number of shares
acquired
Brief background about the entity acquired	Compressed Air Solutions of Texas, LLC was registered as a
in terms of products/line of business	limited liability company with the Secretary of the State, North
acquired, date of incorporation, history of	Carolina. It is yet to commence business operations.
last 3 years turnover, country in which the	Compressed Air Solutions of Texas, LLC will be Manager-
acquired entity has presence and any other	Managed, with Member Bryan Becker serving as the Manager.
significant information

For ELGI EQUIPMENTS LIMITED

Ay M SHYAM VASUDEVAN COMPLIANCE OFFICER

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

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