Majestic Auto Implements SHPL Resolution Plan, Eyes ₹29 Cr Pre-Tax Gain

Majestic Auto Ltd has commenced implementation of the Resolution Plan for Sharan Hospitality Private Limited (SHPL) following a Supreme Court order. The plan involves a total payment of ₹105.42 crore, comprising ₹81.84 crore for the Resolution Plan Amount and ₹23.58 crore for Additional Interest. Funds will be infused via subscription to SHPL securities (₹76.14 crore) and an Inter-Corporate Deposit (₹29.28 crore). In the first phase, Majestic Auto has allotted ₹5 crore in equity shares and ₹35 crore in NCDs to SHPL, making SHPL a wholly-owned subsidiary. The company expects to realize a pre-tax gain of approximately ₹29.28 crore upon transferring securities to designated purchasers.