Elgi Equipments Ltd. — Capital/Financing Update 2024

Feb 12, 2024

==> picture [107 x 35] intentionally omitted <==

February 12, 2024

National Stock Exchange of lndia Ltd. Exchange Plaza C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai - 400 051

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001

Through : NEAPS

Through : BSE Listing Centre

Dear Sir/Madam,

Subject: Intimation of proposed divestment in G3 Industrial Solutions LLC by Elgi Compressors USA Inc, wholly owned subsidiary of the Company. NSE Scrip Code: ELGIEQUIP / BSE Scrip Code: 522074

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), we hereby inform you that the Board of Directors of the Company at their meeting held today have approved the proposal of divestment of entire stake held by the Company’s wholly owned subsidiary Elgi Compressors USA Inc (Elgi USA), in its Joint Venture G3 Industrial Solutions LLC, USA, to the joint venture partner/s.

The Joint Venture Partner/s has/have expressed his/their in-principle interest to buyout the investment of Elgi Compressors USA Inc in G3 Industrial Solutions LLC, as per the terms of the operating agreement ~~.~~ The formalities under the operating agreement and the actual closure are expected to be completed by May 31, 2024. As per the terms of the operating agreement, post divestment of Elgi USA’s stake, G3 Industrial Solutions LLC shall be the exclusive distributor to sell, maintain and service ELGi branded oil flooded rotary screw category products for a period of five years.

We are enclosing herewith the brief details of the aforesaid changes as prescribed under SEBI Listing Regulations read with SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, as Annexure A.

Kindly acknowledge receipt of this letter and update your records.

Thanking you,

Yours truly,

For Elgi Equipments Limited

JAYAKANTHA Digitally signed N by JAYAKANTHAN RAMCHANDRAN RAMCHANDR Date: 2024.02.12 AN 17:40:26 +05'30' Jayakanthan R Chief Financial Officer Encl.: a/a

==> picture [390 x 42] intentionally omitted <==

==> picture [107 x 35] intentionally omitted <==

Annexure

==> picture [474 x 559] intentionally omitted <==

----- Start of picture text -----

the amount and percentage of G3 Industrial Solutions LLC, USA, joint venture of Elgi Compressors
the turnover or revenue or USA Inc, a wholly owned subsidiary of the Company.
income and net worth
Turnover Share of Profit Share of Net-
contributed by the joint venture
FY 2022-23 of JV for FY worth of JV as
during the last financial year
2022-23 at Mar 23.
Amount Turnover is not USD 62,226 Share of JV’s Net
and provided as the JV [0.14% of worth:
Percentage is consolidated by Consolidated USD 2,25,608
using Equity Profit After Contribution to
Method. Tax] Consolidated
Equity: 0.0004%
date on which the agreement for Divestment is covered under the operating agreement of the joint
sale has been entered into venture signed by the partners on October 14, 2020.
the expected date of completion End of May 2024.
of sale/disposal
consideration received from such
sale/disposal
brief details of buyers and Joint venture partner/s.
whether any of the buyers belong He/they does/do not fall under the promoter/ promoter group
to the promoter/ promoter category of the Company.
group/group companies. If yes,
details thereof
whether the transaction would NO
fall within related party
transactions? If yes, whether the
same is done at “arm’s length
whether the sale, lease or Not applicable
disposal of the undertaking is
outside Scheme of Arrangement?
If yes, details of the same
including compliance with
regulation 37A of LODR
Regulations
additionally, in case of a slump Not applicable
sale, indicative disclosures
provided for
amalgamation/merger, shall be
disclosed by the listed entity with
respect to such slump sale
----- End of picture text -----

==> picture [390 x 42] intentionally omitted <==