Majestic Auto Ltd has updated shareholders on its Rs 105.43 crore capital infusion into Sharan Hospitality Private Limited, following a Supreme Court directive. The company has already deployed Rs 75.79 crore through security subscriptions and plans to conclude the remaining obligations shortly. Simultaneously, Majestic Auto has entered into agreements to transfer these acquired assets to external investors, including NovumLake Property Fund and 360 ONE Real Assets Advantage Fund, marking a clear strategic exit path.
Majestic Auto Executes Rs 105 Crore Resolution Plan
Total capital commitment stands at Rs 105.43 crore, with Rs 75.79 crore already deployed.
Reader Takeaway: Majestic Auto fulfills resolution obligations while securing exit routes for its hospitality asset investment via third-party funds.
What just happened
Majestic Auto Limited has provided a status update on its resolution plan for Sharan Hospitality Private Limited (SHPL) in compliance with a Supreme Court order dated July 17, 2026. The company is executing a total capital infusion of Rs 105.43 crore, structured into security subscriptions (Rs 76.15 crore) and an Inter-Corporate Deposit (Rs 29.28 crore).
Why this matters
The infusion is a key step in the corporate insolvency resolution process for SHPL. By completing these phases, Majestic Auto is fulfilling its role as the Successful Resolution Applicant (SRA). The transaction highlights the company’s ongoing commitment to meeting legal mandates while managing its balance sheet exposure to the hospitality sector.
The backstory
The company previously infused Rs 40 crore on August 24, 2026, receiving equity shares and NCDs. A subsequent infusion of Rs 35.79 crore occurred on September 1, 2026, exclusively through NCDs, bringing the total funds deployed to date to Rs 75.79 crore.
What changes now
Majestic Auto is preparing to finalize the remaining commitments, which include subscribing to 35,80,536 additional NCDs and receiving 50,00,000 bonus Redeemable Preference Shares. Following these steps, the company will proceed with the transfer of these assets to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund under existing Securities Purchase Agreements.
Risks to watch
Success remains contingent on the final fulfillment of conditions outlined in the transaction documents. The company has clarified that the exit transaction with the funds does not involve related parties or provide the buyers with board-level control or special pre-emptive rights.
What to track next
Investors should monitor the final disbursement schedule and the formal completion of the asset transfer to the designated investment funds, which will conclude Majestic Auto's involvement in this specific resolution project.