Main Disclosure – Asset Sale Details

Target Entity: This is not a disinvestment of a subsidiary or associate company. The transaction involves the sale of a non-core land property asset.

Asset Description: 75 cents of land (out of a total holding of 7.24 acres) together with a building and all fittings and fixtures located on Trichy Road, Coimbatore.

Percentage Stake Disinvested: Not applicable, as this is a sale of a physical asset, not an equity stake.

Counterparty/Buyer: Mr. S. Senthilnathan from Salem. He is an individual and an unrelated third-party buyer with no connections to the promoter, promoter group, or group companies of Elgi Rubber.

Mode of Consideration: Cash.

Valuation or Price Basis: The total sale consideration is fixed at ₹43,50,00,000 (Rupees Forty Three Crores and Fifty Lakhs only).

Rationale for Disinvestment: The sale is of non-core assets.

Impact on the Company: The disclosure states that the clause regarding the contribution of the unit to turnover or net worth is not applicable, indicating the asset is not a significant revenue-generating unit.

Related Party Status: No. The transaction does not fall within the purview of a related party transaction and is conducted at arm's length.

Approvals Required: The sale was approved by shareholders via a Special Resolution passed under Section 180(1)(a) of the Companies Act, 2013 through a postal ballot process concluded on May 05, 2023. The company notes that SEBI LODR Regulation 37A is not applicable as the shareholder approval was obtained before the regulation became effective (June 15, 2023).

Indicative Timeline: The sale is subject to requisite consents and approvals and is expected to be completed on or before June 30, 2026.

Transaction Status: A Memorandum of Agreement was executed on May 27, 2026. A formal sale agreement has not been executed yet. An advance consideration of ₹10.06 crores has been received from the buyer as of May 29, 2026.

Other Updates

No other disclosures are present in the document.

Compliance Note

The company acknowledges a delay in making this disclosure to the exchange. The reason cited is that the executed Memorandum of Agreement was received on May 29, 2026, and the delay was unintentional. The company has committed to ensuring timely disclosures in the future.