Asian Hotels (North) Limited has disclosed an amendment to the fair value assessment for its ongoing preferential issue, as part of regulatory compliance under SEBI Listing Regulations. The company announced on December 15, 2025, that the fair value per share has been revised upward while maintaining the original issue price for the Rs 764.94 crore investment from Elana Holdings Pte. Ltd., Singapore.

Fair Value Revision Details

The independent registered valuer, M/s GAA Advisory LLP, has updated the fair value assessment for the preferential issue:

Investment Structure Remains Unchanged

Despite the fair value revision, the core terms of the investment agreement with Elana Holdings remain intact:

Regulatory Compliance and Documentation

The fair value revision has been made in compliance with Regulation 166A(1) of SEBI ICDR Regulations, 2018. The updated valuation report is now available on the company's website at the dedicated preferential issue section. This disclosure follows the original EGM notice dated October 14, 2025, and the subsequent corrigendum dated October 31, 2025.

Capital Structure and Approval Status

The preferential issue remains subject to shareholder approval, with the company having scheduled an Extraordinary General Meeting for November 8, 2025. The proposed increase in authorized share capital from Rs 70.00 crore to Rs 75.00 crore, along with the expansion of equity shares from 4,00,00,000 to 4,50,00,000, continues as planned.

Strategic Implications

The upward revision in fair value, while maintaining the issue price, indicates that the preferential issue terms remain favorable for the company. The investment is specifically earmarked for addressing outstanding loans and defaulted interest, positioning Asian Hotels (North) Limited for improved financial health. Elana Holdings will participate as a financial investor without control rights or board representation, ensuring the company maintains operational independence while securing necessary capital for debt restructuring.

Asian Hotels (North) , the owner of Hotel Hyatt Regency Delhi, has reported a significant net loss of INR 5,352.72 crore for the quarter ended September 30. This marks a substantial increase from the INR 2,656.28 crore loss reported in the same period last year, highlighting the ongoing financial challenges faced by the hospitality sector.

Financial Performance

The company's financial results for Q2 reveal a complex picture:

Despite a slight increase in total income, the company's expenses remained high, resulting in a loss before exceptional items and tax of INR 1,831.70 lakhs. The recognition of exceptional items, primarily interest charges including penal interest amounting to INR 5,674.02 lakhs, significantly impacted the bottom line.

Borrowing Defaults and Equity Issue

Asian Hotels (North) has defaulted on repayments of both principal and interest on its borrowings. As of September 30, the outstanding defaults amount to:

• Principal: INR 58,997.32 lakhs
• Interest: INR 17,327.42 lakhs (including penal interest of INR 5,674.02 lakhs)

In response to these financial challenges, the company has taken a significant step. On November 8, an Extra-Ordinary General Meeting was held where shareholders approved a preferential equity issue amounting to INR 76,494.00 lakhs. The proceeds from this issue are intended to be utilized for the repayment of the outstanding borrowings.

Going Concern and Future Outlook

Despite the current financial difficulties, Asian Hotels (North) has prepared its financial results on a going concern basis. The company cites expectations of significant improvements in operating performance and the implementation of cost-reduction measures as reasons for this approach. The management's plan for repayment of borrowings through the newly approved equity issue also supports this stance.

Corporate Restructuring

The company has undergone some corporate restructuring:

1. Voluntary liquidation of foreign subsidiaries: Fineline Hospitality & Consultancy Pte Ltd, Mauritius and Lexon Hotels Venture Ltd., Mauritius.
2. Incorporation of a new subsidiary: AHNL Realty Private Limited, though control is pending due to incomplete share acquisition.

As a result of these changes, Asian Hotels (North) is not required to present consolidated financial results for the quarter ended September 30.

The hospitality sector continues to face challenges, and Asian Hotels (North)'s financial results reflect these industry-wide pressures. The company's efforts to address its debt through a new equity issue and its focus on improving operational performance will be crucial in navigating the current economic landscape.