Varroc Engineering Limited — Capital/Financing Update 2019

Aug 10, 2019

Varroc Engineering Limited

Regd. & Corp. Office

L-4, MIDC, Industrial Area l Tel +91 240 6653600 Waluj, Aurangabad 431 136 Fax +91 240 2564540 VARROC/S E/I NT /2019-20/ 42

To,

(1) The Manager- Listing The Listing Department, National Stock Exchange of India Limited Exchange Plaza, Plot No. C/l, G Block, Bancira-l<urla Complex, Bandra (tast), fvlumbal-400051

NSE Symbol: VARROC

email: varroc.info@varroc.com www.varrocaroun.r:nm Maharashtra, India CIN: L28920MH 1988PLC047335

(2) The Manager - Listing The Corporate Relation Department, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, lvlurnbal-400001

BSE Security Code: 541578 Security ID: VARROC

Dear Sir/Madam,

Sub: Acquisition of 74% stake in CarlQ Technologies Private Limited

Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations").

As per the captioned subject, we wish to inform you that Board of Directors of the Company at their meeting held on August 9, 2019, approved the execution of Share Purchase Agreement for initial acquisition of 74% equity stake in the Pune - based CarlQ Technologies Private Limited.

Details of the proposed acquisition, pursuant to the Regulation 30 of SEBI {Listing obligation and Disclosu re l\equirements) Regulation, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 are given as under:

	' -·Particulars·	Details
	-1 Name of the target entity	TechnologiesPrlvateLi mite ~~JCarlQU74900PN2013PTC145967)("CarlQ")
b)	Whether the acquisition would fallwithin related party transaction(s)whetherthepromoter/andpromoter group/ group companieshave any interest in the entity1 being acquired? If yes, nature ofI interest and details thereof andi whether the same is done at "armsingth"	The acquisition does not fall within rela ted parLv Itransactions and none of Company's pr ornoter /have any Ipromoter group I group companiesinterest in the transaction.
c)	I Industry to which the entity beingI-i acquired belongsI~	Information technology {Computer prog ramming,Artificialconsultancyrelatedactivitiesand----Intelligence related to Auto Industry)
d)	I Objects and effects of acquisitionbutnotj (includinglimitedto,offordisclosurereasonsI acquisition of target entity, if itsI bus,iness is outside the main line of I:_business of the listed entity)	complement C ornpany'stransaction willThisconnected vehicle product offeringssuchasand otherinstrument clusters, telematic devicesdata based analytical product offerings.

SL No.	P<.irticulars	c ntiouafoo;> c,h, ~ ---------~--------------rro 1=Details
e)1---	------------Brief details of any governmental orregulatory approvals required for__ __ ____i the __ quisition;	---------------exc~LLNC ~No governmental or regulatory approvals c:irerequired for this acquisition.____________________
f)	timeIndicativeperiodforr-----t completion of the acquisition	11On or before .August 31, 2019 or such other dateas may be mutually agreed between the Parties
g)-	Nrit1irr of c:nn<;irleration -whethercash consideration or share swap1-and details of the same	Cash consideration ·
1---h)	"Cost of acquisition or the price atwhich the shares are acquired	Rs.19.24 Crores
i)		74% Equity stake on fully diluted basis
j)	IIi_~	CarlQ is a Indian start-up Company incorporatedon January 11, 2013, engaged in the business ofproviding integrated connected vehicle solutionsto OE Ms, fleet owners and insurance companies.proprietarysolutionCarl Q'sisaseamlesscombination of hardware, software and loTplatform that enables safer driving, optimisinguptime and pe.rsonai and commercial mooility. Itsdata analytics platform helps gather engineeringdata from a car and convert it into a useful formatfor vehicleusers,OEMs,fleet ownersandInsurance Companies.Turnover of the CarlQ for last 3 years is as followsJ:IFY 2018-19: R.s.132.1 millionFY 2017-18: Rs.16.8 million .
L_		----------------------FY2016-17: Rs.38.2 million--

Kindly ta ke the above information on record and note the c9rnpli;rnce. · -·

Thanking you,

Yours fait hfully, For Varroc Engineering Limited

~ Darji

Rakesh ---- Companv Secretary & Compliance Officer