Majestic Auto begins SHPL plan, eyes ₹29.28 cr gain

What Majestic Auto announced

Majestic Auto Ltd (NSE: MAJESAUT, BSE: 500267) has begun implementing the resolution plan of Sharan Hospitality Private Limited (SHPL) after a favourable Supreme Court order dated July 17, 2026. The company described the deal as a multi-phase implementation that ends with SHPL-related securities being transferred to two institutional funds. Majestic Auto’s filings outline a structure where it first subscribes to SHPL securities and then sells those securities onward for an aggregate consideration linked to the resolution plan payment. The company has indicated an expected pre-tax gain of about ₹29.28 crore from the overall transaction economics, based on disclosed acquisition and sale values.

The company’s disclosures also position the move as part of a structured financing arrangement with NovumLake Property Fund and 360 ONE Real Assets Advantage Fund. Under the plan, Majestic Auto subscribes to securities in SHPL and later transfers them to the two funds. The total payment for implementing the plan was disclosed at approximately ₹105.43 crore.

Supreme Court order and settlement with ARC

Majestic Auto told shareholders it executed a Consent and Dispute Settlement Agreement with Assets Care & Reconstruction Enterprise Limited (ARC) on July 15, 2026. The agreement was taken on record by the Supreme Court on July 17, 2026. This legal step enabled implementation of SHPL’s resolution plan as described by the company. Majestic Auto also disclosed it received the Supreme Court order on July 23, 2026.

The company’s communication links the settlement and the court’s acceptance of the agreement with the ability to proceed with the resolution plan transaction steps. The sequence of dates is relevant because it shows when the legal clearance was obtained and when execution activity began through security allotments.

Phase one: ₹40 crore infusion and 100% control

In the first phase, Majestic Auto infused ₹40.00 crore into SHPL through a mix of equity and non-convertible debentures (NCDs). The company said this step made SHPL a wholly-owned subsidiary, securing 100% control of SHPL’s paid-up equity capital. The ₹40 crore subscription comprised 5,00,000 equity shares and ₹35.00 crore of NCDs.

Majestic Auto framed this as the first step in a larger multi-phase plan. The disclosures repeatedly state that the securities will ultimately be transferred to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund once all acquisition steps are completed.

Phase two: additional NCD allotment approved on September 1, 2026

In a subsequent update, Majestic Auto disclosed a further infusion that took the total funds infused into SHPL to ₹75.79 crore. In the current phase approved on September 1, 2026, SHPL’s Monitoring Committee allotted ₹35.79 crore worth of NCDs to Majestic Auto. The filing stated that this allotment brought the total infused amount to ₹75,79,00,000.

This means Majestic Auto has completed the first two phases of the fund infusion described in the information set. The disclosures also reiterate that the overall transaction continues to be executed under the Supreme Court-approved resolution plan.

Total plan cost: ₹105.43 crore and its components

Majestic Auto disclosed a total payment of approximately ₹105.43 crore for implementing the plan. It is split into ₹81.84 crore towards the Resolution Plan Amount and ₹23.58 crore to ₹23.59 crore towards Additional Interest, with the interest figure appearing in slightly different form across sections of the information set.

The company also outlined the financing and execution pathway: a Securities Purchase Agreement with NovumLake Property Fund and 360 ONE Real Assets Advantage Fund is intended to fund the implementation. The structure described is that Majestic Auto will subscribe to SHPL securities and later transfer them to these institutional funds for a total consideration of ₹105.43 crore.

Remaining steps: NCD balance, bonus preference shares, and ICD

Majestic Auto stated that in subsequent phases it will subscribe to the remaining ₹36.15 crore in NCDs. It also disclosed that it will receive 50 lakh bonus redeemable preference shares. In addition, the company plans to extend an inter-corporate deposit (ICD) of ₹29.28 crore.

The filings specify that the ICD is recoverable and is not part of the sale consideration. In the company’s described funding structure, the security subscription is ₹76.15 crore towards subscribing to SHPL securities, while the ICD of ₹29.28 crore sits alongside it as a separate infusion.

Expected economics: acquisition cost vs sale consideration

After the acquisition steps are completed, Majestic Auto plans to transfer all securities to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund. The disclosures indicate an aggregate acquisition cost of ₹76.15 crore for the securities and a total sale consideration of ₹105.43 crore.

Based on these disclosed figures, Majestic Auto expects a pre-tax gain of approximately ₹29.28 crore. The company has consistently referenced this number as the expected gain from the overall transaction economics.

Key figures and timeline

Stock identifiers and reported price points

The company’s stock identifiers were listed as NSE: MAJESAUT and BSE: 500267, with the sector tagged as Business Support. One data point in the information set reported the share price at ₹367.10 with a gain of ₹0.30 (0.08%) on BSE at 12:56 PM. Another point stated a share price of ₹362.05 as on August 24, 2026. Separately, the information set also included an “Ans” line stating the current share price of Majestic Auto as ₹353.65.

These price references were presented as separate data points in the compilation and were not described as a single continuous time series.

Why SHPL matters in Majestic Auto’s consolidated picture

Majestic Auto disclosed that SHPL contributed 1.01% to Majestic Auto’s consolidated revenue in FY25. While the filing does not provide the absolute revenue numbers in the information set provided here, the percentage indicates that SHPL’s contribution was relatively small at the consolidated level at that time.

The transaction described is therefore positioned more around resolution-plan execution and the planned transfer of securities to institutional funds, rather than being presented as a revenue expansion announcement.

Background: earlier regulatory milestone referenced

The information set also referenced: “Majestic Auto Gets NCLT Nod For Resolution Plan To Acquire Sharan Hospitality” dated July 10, 2024. The later disclosures focus on the Supreme Court order dated July 17, 2026, and the steps taken to implement the plan through security allotments and planned transfers.

Conclusion

Majestic Auto has initiated implementation of SHPL’s resolution plan after the Supreme Court order dated July 17, 2026, and has made SHPL a wholly-owned subsidiary through security allotments. The company has infused ₹75.79 crore so far, disclosed a total plan consideration of about ₹105.43 crore, and set out remaining steps including further NCD subscription, bonus redeemable preference shares, and a ₹29.28 crore ICD. The stated roadmap ends with transferring SHPL-related securities to NovumLake Property Fund and 360 ONE Real Assets Advantage Fund, with the company indicating an expected pre-tax gain of about ₹29.28 crore based on its disclosed acquisition cost and sale consideration.