Asian Hotels (North) Limited has taken a significant step towards financial restructuring by entering into a Definitive Share Subscription Agreement with Elana Holdings Pte. Ltd., Singapore. The agreement, approved by the company's Board of Directors on October 14, 2025, marks a substantial capital infusion aimed at addressing the company's outstanding debts.

Key Details of the Agreement

Terms of the Investment

The agreement stipulates that Elana Holdings will invest as a financial investor without exercising control over Asian Hotels (North) Limited. Key points of the agreement include:

• Elana Holdings will not be part of the promoter group
• The investor has no right to nominate directors
• The transaction does not constitute a related party transaction

Capital Structure Changes

To accommodate this significant investment, Asian Hotels (North) Limited is set to increase its Authorized Share Capital:

Shareholder Approval and Regulatory Compliance

The preferential issue and the increase in authorized share capital are subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for November 8, 2025. The company has set October 10, 2025, as the cut-off date for determining shareholder eligibility for the EGM.

Market Impact

Post-allotment, Elana Holdings is expected to hold a 54.37% stake in Asian Hotels (North) Limited on a fully diluted basis. This substantial investment could potentially improve the company's financial health and debt profile, which may have positive implications for its market performance and future growth prospects.

The move by Asian Hotels (North) Limited demonstrates a proactive approach to addressing its financial obligations and strengthening its capital structure. As the hospitality sector continues to recover from the impacts of the global pandemic, this infusion of funds could provide the company with the necessary resources to navigate challenges and capitalize on emerging opportunities in the market.

Asian Hotels (North) Limited has announced significant corporate actions that could reshape its capital structure and ownership. The company's Board of Directors has approved two major proposals: an increase in authorized share capital and a substantial preferential issue to a non-promoter entity.

Authorized Share Capital Increase

The Board has given the green light to increase the company's authorized share capital from Rs. 70.00 crore to Rs. 75.00 crore. This will be achieved by adding 50 lakh equity shares with a face value of Rs. 10 each. The move is subject to shareholder approval and other regulatory clearances.

Preferential Issue Details

In a more significant development, the Board has approved a preferential issue of up to 2.32 crore equity shares at Rs. 330.00 per share to Elana Holdings PTE. LTD, a non-promoter entity. This move is expected to raise approximately Rs. 765.00 crore for the company.

Key details of the preferential issue:

Ownership Impact

Post-allotment, Elana Holdings PTE. LTD is set to hold a significant 54.37% stake in Asian Hotels (North) Limited on a fully diluted basis. This marks a substantial shift in the company's ownership structure.

Regulatory Compliance

The preferential issue price has been determined in compliance with Regulation 164A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The entire process is subject to shareholder approval and other necessary regulatory clearances.

Upcoming Extraordinary General Meeting

To seek shareholder approval for these proposals, an Extraordinary General Meeting (EGM) has been scheduled for November 8, 2025. The company has set October 10, 2025, as the cut-off date for determining shareholder eligibility to participate in the EGM.

Conclusion

These corporate actions represent a significant development for Asian Hotels (North) Limited, potentially impacting its capital structure, ownership, and future strategic direction. Shareholders and market participants will be keenly watching the outcome of the upcoming EGM and the subsequent implementation of these proposals.