Elgi Equipments signs MoU with Tamil Nadu Government; stock shines

Elgi Equipments on Tuesday informed the bourses that it has signed a memorandum of understanding (MoU) with Government of Tamil Nadu on July 20, 2020.

Under this MoU, the investment that the company plans to do is non-binding. It aims to support future expansion for serving the growing global demands as well as meet long-term plans. The intended plan will involve an estimated investment of up to Rs 250 crore along with creating significant job opportunities in Coimbatore (Tamil Nadu).

With this MoU, the company expects Government of Tamil Nadu to support the company on various infrastructure needs such as land, power, and other related clearances.

Elgi Equipments is a holding company and an air compressor manufacturer. The company’s segments include compressors, automotive equipment, and so on.

Reacting to this development, the stock of Elgi Equipments surged nearly 7.4 per cent on the bourses on Tuesday to touch an intraday high of Rs 173.9 apiece.