Velan Hotels Limited signed an asset sale agreement on January 13, 2026, with J.P. Associates Asia Pacific Private Ltd for its non-operational hotel properties. Rs 5 crores advance received; proceeds to settle dues with RARE ARC under OTS. Shareholder approval pending; completion eyed before March 31.
Velan Hotels Limited, a Tamil Nadu-based hospitality firm, entered into the agreement today with the Coimbatore entity, a non-related party. The properties, under symbolic possession of M/s. RARE Asset Reconstruction Limited (ARC), generated no revenue since March 2020. Part of proceeds will fully settle company dues per the ARC's One-Time Settlement terms.
Sale falls outside any arrangement scheme, compliant with SEBI LODR Regulation 37A. Board seeks shareholder nod via postal ballot or EGM pre-execution. Advance bolsters liquidity amid restructuring.
Key Transaction Highlights
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Agreement date: 13/01/2026
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Expected closure: Before 31/03/2026
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Advance payment: Rs 5 Crores
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Buyer details: Non-promoter, arm's length deal
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Revenue impact: Zero since FY21
Sources: BSE/NSE filings via ScanX, Company disclosure under Reg 30 SEBI LODR.