Background and Context

This disclosure is in furtherance to earlier communications dated April 17, 2021, November 29, 2021, December 13, 2021 and December 23, 2024. The Resolution Plan for SHPL was approved by the Hon'ble National Company Law Tribunal (NCLT). Axis Bank Limited, as financial creditor of SHPL, initiated liquidation proceedings against SHPL which were subsequently set aside by NCLT, permitting continuation of Resolution Plan implementation. Axis Bank Limited then preferred an appeal before the Hon'ble Supreme Court, where the matter remains pending.

Axis Bank Limited assigned its financial assets relating to SHPL to Assets Care & Reconstruction Enterprise Limited (ARC) through a competitive assignment process.

Key Agreements Executed

Consent and Dispute Settlement Agreement

  • Execution Date: July 15, 2026
  • Parties: Majestic Auto Limited and Assets Care & Reconstruction Enterprise Limited (ARC)
  • Purpose: To record the settlement arrived at between the Company and ARC in relation to the Resolution Plan of SHPL and to jointly approach the Hon'ble Supreme Court seeking withdrawal/disposal of pending proceedings
  • Board Approval: Approved by Board of Directors at meeting held on March 03, 2026
  • Financial Impact: Implementation contemplates payment of ₹81,84,10,538 (Indian Rupees Eighty-One Crores Eighty-Four Lakhs Ten Thousand Five Hundred Thirty-Eight Only) towards Resolution Plan Amount and ₹23,58,69,998 (Indian Rupees Twenty-Three Crores Fifty-Eight Lakhs Sixty-Nine Thousand Nine Hundred Ninety-Eight Only) towards Additional Interest Amount
  • Conditions: Subject to orders of Hon'ble Supreme Court of India and completion of applicable legal and regulatory formalities
  • Special Rights: No special rights such as appointment of directors, pre-emptive rights, rights relating to subscription of securities, or restrictions on capital structure
  • Related Party Status: ARC is not related to Promoter, Promoter Group or Group Companies of the Company
  • Transaction Nature: Not a related party transaction

Securities Purchase and Other Transaction Agreements

  • Parties: NovumLake Property Fund and 360 ONE Real Assets Advantage Fund (Purchasers) along with related transaction counterparties under escrow and funding arrangements
  • Purpose: Framework for proposed transfer of securities to be issued to the Company pursuant to implementation of Resolution Plan of SHPL, along with related escrow and funding arrangements
  • Conditions: Subject to satisfaction of agreed conditions precedent including execution of Consent Agreement, settlement with lender to SHPL, and order of Hon'ble Supreme Court
  • Special Rights: No special rights such as appointment of directors, pre-emptive rights or restrictions on capital structure
  • Related Party Status: Counterparties are not related to Promoter, Promoter Group or Group Companies of the Company
  • Transaction Nature: Not a related party transaction

Current Status and Next Steps

The agreements may now be implemented subject to orders of the Hon'ble Supreme Court and fulfilment of further agreed conditions precedent. The Company will keep the Stock Exchange informed of any further material developments in accordance with applicable provisions of SEBI Listing Regulations.

Annexure Details

The annexure provides comprehensive details as required under amended Regulation 30 including parties, purpose, shareholding, significant terms, related party status, and termination/amendment procedures.