Majestic Auto Limited has successfully concluded the sale of its entire 80% shareholding in Emirates Technologies Private Limited (ETPL) for a total consideration of INR 196.00 crore. The transaction, which began in August, reached its final stage on September 4, with the receipt of the last tranche of INR 54.55 lakh.

Transaction Details

The sale involved the transfer of 1,60,00,000 equity shares of ETPL to six buyers:

Financial Impact

Prior to the sale, ETPL contributed significantly to Majestic Auto's financial position:

• ETPL's net worth: INR 7,249.04 lakhs
• Contribution to Majestic Auto's consolidated net worth: 11.60%

Buyer Profiles

The buyers represent a mix of corporate entities and individuals with backgrounds in real estate development and specialty chemicals:

• Rhombus Infrazone Private Limited and Equilateral Techpark Private Limited: Both companies are involved in real estate development in Noida, focusing on industrial buildings, logistics, and IT/ITES facilities.
• Mr. Naresh Arora: Active in the specialty chemical industry since 1986 and in Noida's real estate sector since 2019.
• Mr. Chirag Arora: Engaged in the specialty chemical industry since 2016 and in Noida's real estate sector since 2019.
• Mr. Gurpreet Singh Sobti: Involved in Noida's real estate sector since 2013.
• Mr. Harsimhar Deep Singh: Active in Noida's real estate sector.

Importantly, none of the buyers are associated with Majestic Auto's promoter group.

Transaction Timeline

The sale process unfolded as follows:

1. August 14: Agreement entered, first tranche of INR 124.66 crore received
2. August 28: Second tranche of INR 70.80 crore received
3. September 4: Final tranche of INR 54.55 lakh received, completing the transaction

Regulatory Compliance

Majestic Auto has adhered to regulatory requirements throughout the sale process:

• The transaction was conducted outside the scheme of arrangement.
• Shareholder approval was obtained via special resolution at the Annual General Meeting held on August 25, 2023, in compliance with Regulation 37A of SEBI Listing Regulations.

With this sale, ETPL has ceased to be a subsidiary of Majestic Auto Limited. The company's timely disclosures and adherence to regulatory norms demonstrate its commitment to transparency in corporate actions.

Majestic Auto Limited , a prominent player in the Indian automotive industry, has announced the receipt of a second payment of ₹70.80 crore from the sale of its 80% stake in Emirates Technologies Private Limited (ETPL). This transaction marks a significant milestone in the company's strategic divestment process.

Transaction Details

The company disclosed this information in a filing to the BSE, adhering to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to the filing, the total consideration for the transaction is set at ₹196.00 crore, payable in full prior to the closing date.

Payment Structure

The payment structure for this high-value transaction is as follows:

With the receipt of this second installment, Majestic Auto has now collected a total of ₹195.45 crore from the sale, leaving a minimal balance of ₹0.55 crore yet to be received.

Buyers and Transaction Timeline

The buyers in this transaction include Rhombus Infrazone Private Limited, Mr. Gurpreet Singh Sobti, Mr. Harsimhar Deep Singh, Mr. Naresh Arora, Mr. Chirag Arora, and Equilateral Techpark Private Limited. Notably, none of the buyers are associated with Majestic Auto's promoter or promoter group.

The agreement for this sale was entered into on August 14, 2023, with the transaction expected to be completed by September 14, 2023.

Impact on Majestic Auto

The sale of ETPL, which contributed 11.60% to Majestic Auto's consolidated net worth based on the last financial year's results, is a strategic move for the company. This divestment is likely to provide Majestic Auto with additional capital for its core operations or potential new ventures.

Regulatory Compliance

Majestic Auto has ensured full compliance with regulatory requirements throughout this transaction. The company obtained shareholder approval for the sale through a special resolution at its Annual General Meeting held on August 25, 2023, in line with Regulation 37A of the SEBI Listing Regulations.

As Majestic Auto progresses towards the completion of this significant stake sale, investors and industry observers will be keenly watching how the company utilizes the proceeds to drive its future growth and strategic initiatives.