Advent Hotels International Limited has informed stock exchanges about a significant tax demand notice received by its subsidiary, marking a regulatory development that requires disclosure under SEBI guidelines.

Tax Demand Details

BD & P Hotels (India) Private Limited, a subsidiary of Advent Hotels International Limited, has received a Notice of Demand under Section 156 of the Income-tax Act, 1961. The notice was issued by the Deputy Commissioner of Income Tax, Central Circle 1(4), Mumbai, for Assessment Year 2024-25.

Company Response and Impact Assessment

The company has stated that the matter is being examined and appropriate steps, including filing of appeal or other remedies, will be taken as considered necessary. The monetary impact is presently limited to the stated demand amount of ₹4,54,35,230.

According to the disclosure, there is no impact on the operations or other activities of the company at this stage. The detailed basis of the demand is being examined by the subsidiary, and the company is evaluating appropriate remedial steps, including appellate remedies, as may be advised.

Regulatory Disclosure Requirements

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that the disclosure is being made in view of the applicable materiality threshold under the company's policy.

The communication was signed by Chirag Sojitra, Company Secretary & Compliance Officer of Advent Hotels International Limited, and submitted to both BSE Limited and National Stock Exchange of India Limited on March 31, 2026.

Advent Hotels International Limited has issued a comprehensive postal ballot notice seeking shareholder approval for a significant material related party transaction involving its associate company and related party dealings. The company has also published newspaper advertisements regarding the postal ballot process in compliance with regulatory requirements.

Transaction Overview

The company proposes a dual transaction structure with Valor Estate Limited, a related party entity. The transaction involves divestment of the company's stake in Bamboo Hotel And Global Centre (Delhi) Private Limited and transfer of outstanding loan obligations.

E-Voting Schedule and Process

The company has engaged National Securities Depository Limited (NSDL) to facilitate the remote e-voting process exclusively, with no physical postal ballot forms being distributed to shareholders.

Regulatory Compliance and Publication

Pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has published newspaper advertisements for the postal ballot notice and remote e-voting process. The advertisements were published in Free Press Journal (English) and Navshakti (Marathi) newspapers.

Strategic Rationale

The proposed transaction aims to simplify the group structure and reduce related-party complexity while substantially reducing the existing outstanding payable of Rs. 2,150.15 crores to Valor Estate. The company expects the transaction to enhance financial flexibility for core operating priorities and improve earnings visibility by removing development and funding obligations from the listed entity.

Bamboo Hotel is developing a hotel complex comprising St. Regis (189 rooms) and Marriott Marquis (590 rooms) with conferencing facilities and commercial office space at Aerocity, New Delhi. The project spans approximately 3.3 million sq.ft. and is nearing completion with an estimated one-year runway requiring additional funding of Rs. 250 crores.

Settlement Structure

The total consideration receivable from Valor Estate aggregating to Rs. 1,655.59 crores will be settled against the existing outstanding of Rs. 2,150.15 crores payable to Valor Estate by the company. This arrangement will significantly reduce the company's outstanding obligations to the related party.

The transaction qualifies as a material related party transaction under SEBI Listing Regulations, requiring special resolution approval from shareholders. The Audit Committee and Board of Directors have approved the proposed transaction on 5th March, 2026, with independent valuation conducted by CA Sumit Dhadda of DLS & Associates LLP.

Mr. Vicky Kundaliya, Practicing Company Secretary, has been appointed as Scrutinizer for the postal ballot process. The results will be communicated to stock exchanges and made available on the company's website and NSDL platform following the conclusion of e-voting.