Majestic Auto Limited ("Company" or "Successful Resolution Applicant" / "SRA") has provided an update on the implementation of the Resolution Plan approved for Sharan Hospitality Private Limited ("SHPL") pursuant to the Hon'ble Supreme Court order dated July 17, 2026.

Key Transaction Details

The Resolution Plan contemplates total payment of ₹105,42,80,536 (Rupees One Hundred Five Crore Forty-Two Lakh Eighty Thousand Five Hundred Thirty-Six Only) structured as:

  • ₹81,84,10,538 towards Resolution Plan Amount
  • ₹23,58,69,998 towards Additional Interest Amount

Out of this amount:

  • ₹76,14,80,536 to be provided towards subscription to various securities of SHPL
  • ₹29,28,00,000 to be infused by way of Inter-Corporate Deposit ("ICD") to SHPL

Securities to be Issued to Company

SHPL shall issue and allot the following securities to the Company:

  • 5,00,000 Equity Shares of face value ₹100 each, allotted at ₹100 per share, aggregating ₹5,00,00,000
  • 71,14,80,536 Non-Convertible Debentures ("NCDs") of face value ₹1 each, allotted at ₹1 per NCD, aggregating ₹71,14,80,536
  • 50,00,000 Redeemable Preference Shares ("RPS") of face value ₹100 each, to be issued on bonus basis

First Phase Implementation Completed

In the first phase, the Monitoring Committee of SHPL approved and allotted the following securities on August 24, 2026:

  • 5,00,000 Equity Shares of face value ₹100 each at ₹100 per share, aggregating ₹5,00,00,000
  • 35,00,00,000 NCDs of face value ₹1 each at ₹1 per NCD, aggregating ₹35,00,00,000

Total securities allotted in current phase: ₹40,00,00,000

Subsequent Phases

In subsequent phases, the Company shall:

  • Subscribe to balance ₹36,14,80,536 NCDs
  • Receive 50,00,000 bonus Redeemable Preference Shares
  • Extend ICD of ₹29,28,00,000

Subsidiary Status

Consequent to allotment of equity shares, SHPL has become a wholly-owned subsidiary of the Company, subject to credit of securities to Company's demat account upon completion of corporate actions with depositories.

Securities Transfer Arrangement

Upon acquisition of all securities, the Company shall transfer them to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund ("Purchasers") in accordance with Securities Purchase Agreements executed with purchasers.

Financial Considerations

  • Aggregate sale consideration receivable by Company: ₹1,05,42,80,536 ("Total Sale Consideration")
  • ICD amount of ₹29,28,00,000 (recoverable nature) not part of Total Sale Consideration
  • Aggregate cost of acquisition: ₹76,14,80,536
  • Expected pre-tax gain: approximately ₹29,28,00,000

Fund Flow Structure

| Particulars | SRA to SHPL (Securities Subscription) | Purchasers to SRA (Securities Sale) | SHPL to SRA (ICD Repayment) |

| NCDs | ₹71,14,80,536 | ₹71,14,80,536 | - |

| Equity Shares | ₹5,00,00,000 | ₹24,82,74,000 | - |

| Redeemable Preference Shares | - | ₹9,45,26,000 | - |

| Total | ₹76,14,80,536 | ₹105,42,80,536 | - |

| ICD | ₹29,28,00,000 | - | ₹29,28,00,000 |

Target Entity Details (SHPL)

  • Authorised Capital: ₹14,25,00,000 (as of March 31, 2025)
  • Paid-up Capital: ₹14,02,77,100
  • Turnover: ₹64,54,050
  • Net Worth: ₹(33,83,37,730)
  • Industry: Hospitality
  • Incorporation Date: July 24, 2002
  • Business: Maintenance & Leasing of Immovable property

Turnover History (SHPL)

  • 2024-25: ₹64.54 lakhs
  • 2023-24: ₹71.45 lakhs
  • 2022-23: ₹56.65 lakhs

Financial Impact on Majestic Auto

Based on consolidated financial results as of March 2025:

  • SHPL Turnover contribution: 1.01%
  • SHPL Income contribution: 9.59%
  • SHPL Net Worth contribution: (5.42)%

Transaction Timeline

  • Agreement execution date: July 15, 2026
  • Acquisition effective date: August 24, 2026
  • Expected completion of sale: October 31, 2026

Purchaser Profiles

1. 360 ONE Real Assets Advantage Fund: Category II AIF managed by 360 One Alternates Asset Management Limited (AUM ~₹52,533 crore as of March 31, 2026)

2. NovumLake Property Fund: Category II AIF managed by NovumLake Partners Private Limited, focused on commercial real estate investments

Additional Notes

  • The transaction does not constitute a related party transaction
  • No governmental or regulatory approvals required beyond already obtained
  • No special rights conferred to purchasers (no board appointment, pre-emptive rights, or capital structure restrictions)