Majestic Auto completes its ₹105.43 Cr SHPL infusion; the securities are already contracted for onward sale

On September 4, after market close, Majestic Auto told the BSE it has completed the infusion of ₹1,05,42,80,536 — ₹105.43 crore — into Sharan Hospitality Private Limited (SHPL) under the resolution plan it is implementing as the Successful Resolution Applicant, pursuant to a Supreme Court order dated July 17, 2026. The same day, 5,00,000 equity shares of SHPL were credited to the company's demat account, and, in the filing's words, SHPL "has become a wholly owned subsidiary of the Company". Against Majestic Auto's own market capitalisation of roughly ₹363 crore, the amount deployed is about 29% of what the whole company is worth on the exchange.

In other words, this is a transaction the market has watched crawl through tribunals for roughly five years, now executed in six weeks flat: the Supreme Court order was received July 23, the first ₹40 crore phase was approved by SHPL's Monitoring Committee on August 24, the second on September 1, and the final tranche plus the deposit on September 4.

The structure matters as much as the amount. Only ₹5 crore of the ₹105.43 crore is equity — the instrument that made SHPL a wholly-owned subsidiary. The bulk, ₹71.15 crore, is debentures, and ₹29.28 crore is a deposit. And the filing is explicit about what happens next: once the remaining securities — the NCDs and the proposed 50,00,000 bonus redeemable preference shares — are credited to the company's demat account, Majestic Auto "shall transfer the same, together with the Equity Shares already held by it" to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund under executed Securities Purchase Agreements, subject to conditions under the transaction documents and applicable law. The sale consideration is described only as the agreed amount "as mentioned in the disclosure dated August 24, 2026"; the annexure states the purchasers are not related to the promoter group and that the agreements confer no special rights over Majestic Auto itself.

The filing frames Majestic Auto as a conduit: acquire SHPL under the court-approved resolution plan, then transfer every security — equity included — to two purchaser funds.

The stock ran from ₹318.10 on June 12 to ₹469.50 on August 6 — a 47.6% move that straddles the July resolution-plan filings — then gave most of it back, closing September 4 at ₹349.00, down 25.7% from that peak and 28.8% below the adjusted 52-week high of ₹490.50 set on August 10. Two things about that tape deserve caution. First, the sharpest single leg up — +9.8% on August 3, on 21,588 shares — has no corresponding filing in the company's disclosure record for those days, so this report cannot attribute it. Second, liquidity is thin: August 31 traded 143 shares, September 2 traded 326. At these volumes, the price is an unreliable measuring instrument, and the September 4 completion filing has not yet had a session in which to be priced.

The P&L of the acquirer is unusual reading. In Q1 FY27 the company reported nil revenue against total income of ₹31.16 crore — that is, everything it earned in the quarter came from lines other than operating revenue — and still delivered ₹18.12 crore of net profit. The four FY26 quarters swing from a ₹2.63 crore loss to a ₹76.14 crore profit, the latter driven almost entirely by a ₹93.46 crore exceptional item. Revenue in no recent quarter exceeded ₹15.39 crore. The filings in this record do not state how the ₹105.43 crore infusion was funded, nor what SHPL's business or assets consist of — both are gaps a holder would reasonably want filled, and neither is something this report can supply from the disclosures available.