Elgi Equipments Ltd. — Capital/Financing Update 2020

Oct 15, 2020

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BSE 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: 1015

DATE: 15/10/2020

Dear Sirs,

Sub: Intimation of formation and investment in the Joint Venture Company “G3 Compressors, LLC” by Elgi Compressors USA Inc, wholly owned subsidiary of the Company.

We wish to inform that the Company’s wholly owned subsidiary Elgi Compressors USA Inc, (ELGi USA) has formed a Joint Venture Company by name G3 Compressors, LLC, a North Carolina Limited Liability Company with 50% ownership along with Chad Gooding, Joint Venture partner, who will also be the Manager of G3 Compressors, LLC, holding 50% ownership.

The operating agreement of G3 Compressors, LLC was signed by ELGi USA and Chad Gooding on 14[th] October, 2020. ELGi USA has subscribed and made its first tranche of investment of $ 35,000 out of the proposed total investment of $ 1,00,000 in Class A shares. Rest of the investment in Class A shares will be made in tranches and is proposed to be completed by December, 2020. Chad Gooding the Joint Venture Partner will not be eligible to participate in Class B Shares. ELGi USA will be the only Class B shareholder. Both Class A & Class B shares carry voting rights. Capital Contribution of ELGi USA with respect to the Class B Shares shall be in one or more increments of $25,000 and in an aggregate amount that may exceed $250,000. ELGi USA has made its first tranche of investment of $ 5,000 out of the proposed total investment of $ 25,000 in Class B shares and the balance is proposed to be invested by November, 2020.

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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,

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Annexure A

Name of the Company details in brief such as size, turnover etc.,		G3 COMPRESSORS, LLC A North Carolina Limited Liability Company. Proposed Holding Structure: Ownership: Class A & B shares (2 Classes, both voting) Class Name Nature of holding Share Capital Perce ntage of holdi ng Class A ELGi Compresso rs USA Inc Member $1,00,000 50% Class A Chad Gooding Member /Manag ing Partner $1,00,000 50% Class B ELGi Compresso rs USA Inc Member $25,000 0% Class B:  Preferential Payment of invested capital with preferred return Turnover: NIL
Whether the acquisition would fall within related party transactions and whether the promoter / promoter group / group companies have any interest in the entitybeingacquired		NO. The promoter / promoter group / group companies do not have any interest in the equity being acquired.
Industry to which the entity being acquired belongs		Capital Goods-Air Compressors and its spares.
Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target		G3 Compressors, LLC will act as an exclusive dealer / distributor for Elgi Compressors USA Inc, (wholly owned subsidiary of Company) for the ELGi rotary screw (oil- flooded or oil-free)compressors in Kansas City,U.S.A.

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entity, if its business is outside the main line of business of the listed entity)
Brief details of any governmental or regulatory approvals required for the acquisition	None
Indicative time period for completion of the Investment	December, 2020
Nature of consideration – whether cash consideration or share swap and details of the same	Cash – Investment will be made in tranches by both the members.
Cost of acquisition or the price at which the shares are acquired	Elgi Compressors USA Inc, has invested $ 35,000 under Class A, being the first tranche of investment out of the total investment of $ 100,000 and $ 5,000 under Class B shares been made out of the total investment of $ 25,000.
Percentage of shareholding / control acquired and / or number of shares acquired	50%
Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information	G3 Compressors, LLC is registered as a limited liability company with the Secretary of the State, North Carolina. G3 Compressors, LLC will be Manager-Managed, with Member Chad Gooding serving as the Manager.

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