The agreement was executed on 23rd September 2026 between Mukta Arts Limited, Mukta A2 Cinemas Private Limited, Mr. Rajiv Malhotra (existing shareholder), and Mr. Sunil Shamrao Patil (the Investor).

Key Transaction Details:

  • Investment Amount: The Investor, Mr. Sunil Shamrao Patil, has agreed to invest up to ₹10 crores in Mukta A2 either by himself or through his affiliates.
  • Securities Issued: In consideration for the investment, Mukta A2 will issue equity shares and Compulsorily Convertible Debentures (CCDs) to the investor or its affiliates.
  • Current Shareholding: As of the disclosure date, Mukta Arts Limited holds 70% and Mr. Rajiv Malhotra holds 30% stake in Mukta A2.
  • Conditions Precedent: The closing of the transaction is subject to the satisfaction of certain conditions precedents as specified in the Securities Subscription Agreement.

Impact on Ownership and Control:

  • Subsidiary Status Change: Post-transaction, Mukta A2 will cease to be a subsidiary of Mukta Arts Limited and will become an Associate Company.
  • Shareholding Dilution: Mukta Arts Limited's shareholding in Mukta A2 will be diluted to approximately between 42% to 49%.
  • Management Control: The disclosure explicitly states there is no impact on the management or control of the listed entity (Mukta Arts Limited).

Restrictions and Liabilities:

  • Transfer Restriction: Mukta Arts Limited cannot transfer any part of its shareholding in Mukta A2 to any third party without obtaining prior written consent from the Investor (Mr. Sunil Shamrao Patil).
  • No Additional Liability: No other restrictions or liabilities were imposed upon Mukta Arts Limited as per the disclosure.

Related Party Considerations:

  • Current Relationship: Mukta Arts Limited and Mukta A2 are related parties. Mr. Rajiv Malhotra (existing shareholder) is also a related party.
  • Investor Status: As of the disclosure date, the Investor (Mr. Sunil Shamrao Patil) is not a related party of either Mukta Arts Limited or Mukta A2.
  • Arm's Length Transaction: The transaction does not qualify as a Related Party Transaction under applicable regulations.

Governance Aspects:

  • Board Representation: No nominee director shall be appointed to the Board of Directors of Mukta Arts Limited as a result of this agreement.
  • Conflict of Interest: The disclosure does not indicate any potential conflict of interest arising from these agreements.