Velan Hotels Limited has signed an addendum to its asset sale agreement with J.P.Associates Asia Pacific Private Ltd, extending the completion timeline for a significant hotel property transaction. The company disclosed this development under Regulation 30 of SEBI regulations on May 01, 2026.

Transaction Details and Payment Structure

The total sale consideration for the hotel property located in Tirupur, Tamil Nadu amounts to Rs.37,17,14,968. The transaction structure demonstrates substantial progress in execution:

The buyer has already remitted Rs.35.12 crore as advance payment, excluding applicable Tax Deducted at Source (TDS). The remaining balance will be settled on the registration date, with TDS deduction handled during the sale deed registration process.

Timeline Extension and Completion Schedule

The addendum modifies the original completion timeline due to the buyer's financing arrangements. The key dates have been restructured as follows:

J.P.Associates Asia Pacific Private Ltd requested additional time to complete their financing arrangements for the property acquisition, leading to the timeline extension through the addendum agreement.

Debt Settlement and Financial Impact

A significant portion of the advance payment was utilized to settle the company's obligations with RARE Asset Reconstruction Ltd through a One-Time Settlement (OTS) arrangement. RARE ARC issued a No-Due Certificate dated April 30, 2026, confirming the settlement of all company dues.

This debt settlement has transformed Velan Hotels' financial position:

• All mortgaged properties have become free-hold properties
• The company achieved secured debt-free status
• Only unsecured loans from promoter-directors and associate companies remain

Buyer Profile and Transaction Compliance

J.P.Associates Asia Pacific Private Ltd, based in Coimbatore, Tamil Nadu, serves as the prospective purchaser. The company confirmed that this buyer does not belong to the promoter, promoter group, or group companies, ensuring the transaction remains at arm's length.

The sale does not qualify as a related party transaction and falls outside any scheme of arrangement. Velan Hotels obtained necessary shareholder approval through a special resolution passed via postal ballot and remote e-voting process, completed on February 19, 2026, ensuring compliance with Companies Act 2013 and SEBI-LODR Regulations.

Property Performance Context

The hotel properties being sold have not generated any turnover, revenue, or income since March 2020, indicating the strategic nature of this divestment decision. The transaction represents a significant step in the company's asset optimization and debt management strategy.

Velan Hotels Limited has submitted its quarterly compliance certificate to regulatory authorities, confirming adherence to SEBI dematerialization regulations for the quarter ended March 31, 2026.

Regulatory Compliance Certificate

The company filed its certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 on April 15, 2026. The certificate was addressed to both major depositories in India and confirms the company's compliance with dematerialization procedures during the reporting quarter.

Registrar Confirmation

MUFG Intime India Pvt. Ltd., formerly Link Intime India Private Limited, serves as the company's Registrar and Transfer Agent. The registrar provided confirmation on April 3, 2026, certifying that all dematerialization processes were completed within prescribed timelines.

The registrar confirmed that:

• Securities received for dematerialization were properly verified
• Physical certificates were mutilated and cancelled after due verification
• Depository names were substituted in the register of members as registered owners
• All procedures were completed within the 15-day regulatory timeline

Certification Details

Company Secretary and Compliance Officer Garima Maheshwari signed the compliance certificate on behalf of Velan Hotels Limited. The certificate confirms that dematerialized securities are listed on the same stock exchanges where the company's earlier issued securities are traded.

Corporate Information

Velan Hotels Limited operates from its registered office at 41, Kangetam Road, Tirupur - 641 604, Tamil Nadu. The company maintains its business operations at SF No: 36 & Door No.41 E & F, K.G.Pudur, Kangetam Road, Tirupur. This quarterly filing demonstrates the company's commitment to maintaining regulatory compliance and transparent corporate governance practices.