Elgi Equipments Limited has informed the Exchange about Diversification/ Disinvestment. In continuation to our earlier disclosures dated September 26, 2024 and October 31, 2024 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( SEBI Listing Regulations ), we hereby inform you that the transaction of divestment of entire stake held by the Company s wholly owned subsidiary, Elgi Compressors USA Inc (Elgi USA), in its Joint Venture Compressed Air Solutions of Texas LLC (CAST), USA, to the joint venture partner has been completed for a total consideration of $ 154,586.00 USD.
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Elgi Equipments has completed the sale of its entire stake in a US-based Joint Venture called Compressed Air Solutions of Texas LLC (CAST). The stake was held through its wholly owned US subsidiary, Elgi Compressors USA Inc, and was sold to the JV partner for a total consideration of USD 154,586 (approximately ₹1.3 crore). This follows earlier disclosures made by the company in September and October 2024 regarding the planned exit. CAST was a small joint venture entity focused on compressed air solutions in Texas, USA.
The financial impact is negligible given the small transaction size, and the divestment is unlikely to materially affect Elgi's earnings or stock price. However, it signals the company's strategic focus on consolidating its core compressor business and exiting smaller, non-strategic international JV arrangements.