Elgi Equipments: UAE subsidiary enters JV for market expansion

Tamil Nadu-based air compressor manufacturer, Elgi Equipment informed in a stock exchange filing that its subsidiary in UAE has entered a joint venture with local Emirati, on Thursday after market hours.

Elgi Gulf FZE, its wholly-owned subsidiary, incorporated a company by the name and proposes to subscribe and invest to an extent of 1.47 lakh UAE Dirhams constituting 49 per cent of the total capital of, Elgi Gulf Mechanical and Engineering Equipment Trading LLC in the United Arab Emirates (UAE). The objective of proposing to acquire 49 per cent ownership stake in this company is to facilitate the sale of air compressors for customers located in the region.

Elgi Equipments is a holding company and an air compressor manufacturer with a broad line of innovative and technologically superior compressed air systems. The company’s segments include compressors, automotive equipment and others.

The stock of Elgi Equipments touched an intraday high of Rs. 274.95 per share on Friday. At 11:15 stock gave up its initial gains to trade at Rs. 263.10 per share price, lower by 0.10 per cent on BSE.