Velan Hotels expects sale registration within grace period

0 min read Updated on 16 Jun 2026, 04:17 PM

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Anirudha BScanX News Team

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Velan Hotels Limited informed the exchanges that the registration of its hotel property sale to M/s.J.P.Associates Asia Pacific Private Ltd is delayed. The buyer missed the June 15, 2026 deadline due to the unavailability of a key representative. The company expects the registration to be completed within the 10-day grace period stipulated in the Addendum to the Asset Sale Agreement.

*this image is generated using AI for illustrative purposes only.

Velan Hotels Limited expects to complete the registration of its hotel property sale within a 10-day grace period following a delay by the prospective purchaser. The buyer, M/s.J.P.Associates Asia Pacific Private Ltd, could not complete the registration by the June 15, 2026 deadline due to the unavailability of a key person who was held up by another urgent assignment. The sale process covers hotel properties owned by Velan Hotels Limited .

The company had previously entered into an Asset Sale Agreement with the buyer on January 13, 2026, and an Addendum to the agreement on April 28, 2026. Under the terms of the Addendum, the registration of the sale was required to be completed on or before June 15, 2026. The agreement includes a provision granting a grace period of 10 days from the due date to finalize the process.

Consequently, the registration is now anticipated to be concluded within this extended timeframe. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Historical Stock Returns for Velan Hotels

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.99%	-6.19%	-10.45%	+1.72%	+6.87%	+64.17%

What are the potential financial implications for Velan Hotels if the registration is not completed within the 10-day grace period?

How might this delay impact the buyer's ability to finalize the deal, given the unavailability of a key person?

Could this delay signal broader challenges for Velan Hotels in divesting its hotel properties?

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Velan Hotels Narrows FY26 Net Loss to ₹850.04 Lakh

2 min read Updated on 23 May 2026, 07:41 PM

Reviewed by

Suketu GScanX News Team

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Velan Hotels Limited announced its audited financial results for the year ended March 31, 2026, reporting a net loss of ₹850.04 lakh, an improvement from the previous year's loss of ₹1,280.67 lakh. Total income from operations rose to ₹3.55 lakh, while total expenses decreased to ₹853.59 lakh. The Board approved the results and the re-appointment of internal auditors, while the company confirmed full repayment of its loan to RARE ARC.

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Velan Hotels Limited has announced its audited financial results for the financial year ended March 31, 2026. The company reported a net loss of ₹850.04 lakh for the fiscal year, an improvement compared to the net loss of ₹1,280.67 lakh recorded in the previous year. For the quarter ended March 31, 2026, the net loss was ₹699.84 lakh.

Total income from operations for the year ended March 31, 2026, was ₹3.55 lakh, up from ₹0.18 lakh in the corresponding period last year. Income from operations for the quarter stood at ₹0.23 lakh. The company's total expenses for the year amounted to ₹853.59 lakh, down from ₹1,280.85 lakh in the previous year.

Financial Performance

The company's basic and diluted earnings per share (EPS) for the year were reported at (₹2.66), compared to (₹4.01) in the prior year. The paid-up equity share capital remained unchanged at ₹3,196.41 lakh. Reserves excluding revaluation reserves stood at (₹5,332.71) lakh as of March 31, 2026.

Particulars	Year Ended 31.03.2026 (Audited)	Year Ended 31.03.2025 (Audited)
Total Income	3.55	0.18
Total Expenses	853.59	1,280.85
Net Profit/(Loss)	(850.04)	(1,280.67)
Earnings Per Share (Basic)	(2.66)	(4.01)

Operational Updates and Disclosures

The Board of Directors at its meeting held on May 22, 2026, approved the audited financial results. Additionally, the board approved the re-appointment of M/s. N. Sathiamoorthy & Associates, Chennai, Chartered Accountants as the Internal Auditors for the financial year 2026-27.

The company disclosed that it has fully repaid its loan to M/s. RARE Asset Reconstruction Limited (ARC) and obtained a No Due Certificate. During the quarter, the company repaid ₹18.43 crore from the advance received on the sale of its hotel at Tiruppur. The company had previously remitted ₹82.52 crores to the ARC up to March 31, 2025.

Auditor's Report

The statutory auditors, Krishaan & Co., issued a qualified opinion on the standalone annual financial results. The qualifications primarily relate to the company's ability to continue as a going concern due to the erosion of net worth and the suspension of all revenue-generating operations since March 24, 2020. The auditors also noted significant delays in the remittance of statutory dues and that provisions for gratuity and leave encashment were not considered due to the resignation of all employees except Key Managerial Personnel.

Historical Stock Returns for Velan Hotels

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.99%	-6.19%	-10.45%	+1.72%	+6.87%	+64.17%

With the full repayment of the RARE ARC loan and a No Due Certificate obtained, what is Velan Hotels' next strategic plan to resume revenue-generating operations that have been suspended since March 2020?

Following the sale of its Tiruppur hotel property, is Velan Hotels considering divesting additional assets to address its deeply negative reserves of ₹5,332.71 lakh and restore net worth?

Given the auditors' going concern qualification and the resignation of all employees except KMPs, what timeline and conditions would need to be met for Velan Hotels to attract new talent and restart hospitality operations?