Majestic Auto has finalized its Rs 105.43 crore funding commitment for Sharan Hospitality Private Limited (SHPL) under an approved resolution plan. Following the final capital infusion, SHPL is now a wholly-owned subsidiary. The company plans to transfer its full stake—comprising equity shares, NCDs, and preference shares—to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund. This strategic move marks the culmination of a three-phase resolution process initiated to resolve SHPL's financial obligations.
Majestic Auto Finalizes Sharan Hospitality Acquisition and Planned Divestment
Majestic Auto Limited has completed its Rs 105.43 crore funding obligation under the approved resolution plan for Sharan Hospitality Private Limited (SHPL). With the final tranche now infused, SHPL has officially transitioned into a wholly-owned subsidiary of Majestic Auto.
Reader Takeaway: Majestic Auto completes resolution funding to exit SHPL, transferring ownership to third-party funds NovumLake and 360 ONE.
What just happened
Majestic Auto successfully concluded its capital infusion for SHPL across three phases, totaling Rs 105.43 crore. This amount included Rs 5 crore in equity, Rs 71.15 crore in non-convertible debentures (NCDs), and Rs 29.28 crore in inter-corporate deposits. While 500,000 equity shares have already been credited to Majestic Auto’s demat account, the NCD credits are pending. Once the remaining securities—including 5,000,000 bonus redeemable preference shares—are secured, the company will divest its entire holding to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund.
Why this matters
The transaction signifies the successful completion of a resolution plan, effectively clearing SHPL’s path toward new ownership under independent real estate funds. For Majestic Auto, this concludes its role as the resolution applicant. The company has clarified that the divestment to the Purchasers is not a related party transaction and carries no special governance rights, ensuring the exit is purely a commercial liquidation of its stake.
What changes now
Majestic Auto is in the process of finalizing the transfer of its newly acquired stake. The timeline is now contingent on the formal credit of the pending NCDs and the issuance of preference shares. Once these legal formalities are completed, the stake will be transferred to the Purchasers per the terms of the existing Securities Purchase Agreements.
What to track next
Investors should monitor the final confirmation of the NCD and preference share credit to the demat account, which will trigger the final transfer of the asset to the Purchasers.