Majestic Auto Finalizes Resolution Plan for Sharan Hospitality

• Implementation of SHPL resolution plan concluded with Supreme Court approval.
• 5,000,000 Bonus Redeemable Preference Shares issued following board approval.

Reader Takeaway: The resolution plan for SHPL is now implemented, with asset divestment to third-party funds currently underway.

What just happened

Majestic Auto Ltd has officially implemented the resolution plan for Sharan Hospitality Private Limited (SHPL), a process sanctioned by the Supreme Court on July 17, 2026. As a result, the monitoring committee overseeing the process has been dissolved, and a new board of directors has taken control of SHPL. Majestic Auto also confirmed the issuance of 5,000,000 Bonus Redeemable Preference Shares (Bonus RPS) by SHPL, which are pending credit to the company’s demat account.

Why this matters

The completion of this resolution plan marks the exit phase for Majestic Auto from this specific hospitality restructuring. The company has already processed the NCDs allotted under the plan and is now preparing to offload its equity holdings, NCDs, and the newly issued Bonus RPS to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund. This divestment aligns with the Securities Purchase Agreements previously established.

Transaction Governance

Majestic Auto has clarified that the purchasing entities—NovumLake Property Fund and 360 ONE Real Assets Advantage Fund—have no relationship with its promoter or group companies. Furthermore, the transaction agreement grants no special rights, board seats, or pre-emptive controls to the purchasers, ensuring the deal remains a straightforward transfer of assets.

What to track next

Investors should track the final credit of the 5,000,000 Bonus RPS into the demat account and the subsequent confirmation of the total share and NCD transfer to the designated funds. These steps will effectively conclude Majestic Auto's involvement in the SHPL turnaround project.