Majestic Auto Ltd Commences SHPL Resolution Plan Implementation
Majestic Auto Ltd has begun implementing the Resolution Plan for Sharan Hospitality Private Limited (SHPL) following a Supreme Court order dated July 17, 2026. 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 used for subscription to SHPL securities (₹76.14 crore) and an Inter-Corporate Deposit (₹29.28 crore). In the first phase, Majestic Auto has infused ₹40 crore into SHPL by subscribing to equity shares and NCDs, making SHPL a wholly-owned subsidiary. Subsequent phases include subscribing to remaining NCDs, receiving bonus preference shares, and extending the ICD. The company expects to realize a pre-tax gain of approximately ₹29.28 crore upon transferring securities to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund.
Key Highlights
- Majestic Auto Ltd begins implementing SHPL Resolution Plan post Supreme Court order.
- Total resolution plan payment of ₹105.42 crore, including interest.
- SHPL becomes wholly-owned subsidiary after ₹40 crore infusion in phase one.
- Expected pre-tax gain of ₹29.28 crore upon securities transfer.
- Securities to be transferred to NovumLake Property Fund and 360 ONE Real Assets.
Price Impact
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