Advent Hotels International Ltd has acquired 10,95,000 preference shares of its subsidiary BD and P Hotels (India) Private Limited for ₹10.95 crore. The Board of Directors approved the acquisition on July 1, 2026, to facilitate the creation of security for proposed non-convertible debentures (NCDs). This transaction allows the company to pledge the preference shares in favor of a lender, streamlining the security creation process by eliminating the need for multiple preference shareholders to execute documentation individually.

The company acquired the entire 9% Non-Cumulative Redeemable Preference Shares of the face value of ₹100 each from existing preference shareholders. This constitutes a related party transaction as the promoter group has an interest in the preference shares of BD and P Hotels. The transaction was conducted at arm's length. The consideration of ₹10.95 crore will be paid through banking channels, and the acquisition is expected to be completed within 30 days or as mutually extended.

Financials of BD and P Hotels

BD and P Hotels, incorporated on April 25, 1997, operates in the hotel and hospitality business. The subsidiary reported a revenue from operations of ₹102,36,74,576 as on March 31, 2026. The company already holds 75% equity shares in BD and P Hotels, and with this acquisition, it will hold 100% of the preference holdings.

Transaction Details

The acquisition is part of a broader strategy where subsidiaries Goan Hotels & Realty Private Limited and BD and P Hotels propose to issue senior, secured, interest-bearing, redeemable NCDs. Shareholders of Advent Hotels International Ltd had previously approved the creation of security via a special resolution passed on March 15, 2026. The authorized capital of BD and P Hotels stands at ₹45,00,00,000, divided into 3,00,00,000 equity shares of ₹10 each and 1,50,00,000 preference shares of ₹10 each.

Advent Hotels International Limited reported a consolidated net profit of ₹6,539.87 lakh for the financial year ended March 31, 2026, marking a significant increase from ₹2,714.13 lakh in the previous year. The company’s board approved the audited standalone and consolidated financial results for the fourth quarter and year ended March 31, 2026, during a meeting held on May 19, 2026. Statutory auditors Mehta Chokshi & Shah LLP issued an unmodified opinion on the results.

The consolidated total income for the year stood at ₹39,123.00 lakh, up from ₹36,716.40 lakh in the prior year. Revenue from operations for FY26 was ₹38,759.87 lakh, compared to ₹36,657.42 lakh in FY25. For the quarter ended March 31, 2026, the company reported a net profit of ₹366.85 lakh, with total income of ₹11,792.56 lakh.

On a standalone basis, the company reported a net loss of ₹328.90 lakh for FY26, compared to a net loss of ₹0.98 lakh in the previous year. Total standalone income for the year was ₹898.82 lakh, primarily driven by other income of ₹898.82 lakh, as revenue from operations remained nil. The standalone net loss for the quarter ended March 31, 2026, was ₹442.22 lakh.

The board also approved the dissolution of the Risk Management Committee with immediate effect, as it was voluntarily constituted and not mandatorily required under Regulation 21 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated it would reconstitute the committee when required under regulations.

The financial results reflect the impact of the Composite Scheme of Arrangement sanctioned by the NCLT, Mumbai Bench, effective from April 1, 2025, where the hospitality business of Valor Estate Limited was demerged into the company. The transaction was accounted for as a common-control business combination using the pooling of interests method.

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