Majestic Auto Limited , a prominent player in the automotive sector, has announced a significant strategic move that is set to reshape its corporate structure. The company has entered into an agreement to sell its entire 80% stake in its subsidiary, Emirates Technologies Private Limited (ETPL), for a substantial sum of ₹1,960 crores.

Transaction Details

The agreement outlines the following key points:

• Total Consideration: ₹1,960.00 crores
• Advance Payment: ₹1,246.59 crores (already received)
• Expected Completion Date: September 14, 2025
• Stake Being Sold: 80% ownership in ETPL

Buyers and Their Profiles

The buyers in this transaction include a mix of companies and individuals, none of whom are associated with Majestic Auto's promoter group:

1. Rhombus Infrazone Private Limited: A private company involved in real estate development in Noida since 2023, focusing on industrial, logistic, and IT/ITES buildings.
2. Mr. Gurpreet Singh Sobti: An individual with experience in Noida's real estate sector since 2013.
3. Mr. Harsimhar Deep Singh: Engaged in Noida's real estate development since 2024.
4. Mr. Naresh Arora: Active in the specialty chemical industry since 1986 and Noida's real estate sector since 2019.
5. Mr. Chirag Arora: Involved in the specialty chemical industry since 2016 and Noida's real estate since 2019.
6. Equilateral Techpark Private Limited: A private company focusing on real estate development in Noida since 2023.

Financial Impact

The sale of ETPL is expected to have a significant impact on Majestic Auto's financial position:

• ETPL's Net Worth: ₹724.90 crores
• Percentage of Majestic Auto's Consolidated Net Worth: 11.60%

Regulatory Compliance

Majestic Auto has ensured compliance with regulatory requirements:

• The sale is outside any scheme of arrangement.
• It does not constitute a related party transaction.
• Shareholder approval was obtained through a special resolution at the Annual General Meeting held on August 25, 2023, in compliance with Regulation 37A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market Implications

This divestment represents a significant move for Majestic Auto Limited, potentially allowing the company to streamline its operations and focus on core business areas. The substantial transaction value of ₹1,960.00 crores is likely to strengthen the company's financial position and provide capital for future growth initiatives.

As the automotive industry continues to evolve, this strategic decision by Majestic Auto Limited could be seen as a step towards adapting to changing market dynamics and optimizing its business portfolio.

Majestic Auto , a company operating in the real estate and management services segment, has announced strong financial results for the first quarter. The company's performance showcases significant growth in both standalone and consolidated figures, accompanied by a generous dividend payout.

Consolidated Financial Highlights

Majestic Auto Limited reported impressive consolidated results for Q1:

The company's consolidated revenue from operations stood at ₹1,539.34 lakhs, while the total income reached ₹3,166.31 lakhs. The profit before tax was reported at ₹1,881.81 lakhs, leading to a net profit after tax of ₹1,382.67 lakhs. This strong performance translated to an impressive earnings per share (EPS) of ₹13.30.

Standalone Performance

On a standalone basis, Majestic Auto Limited also delivered robust results:

The standalone revenue from operations was ₹617.96 lakhs, with a total income of ₹2,049.86 lakhs. The company recorded a profit before tax of ₹1,260.42 lakhs and a net profit after tax of ₹949.69 lakhs, resulting in an EPS of ₹9.13.

Dividend Announcement

In a move that will please shareholders, Majestic Auto Limited's Board of Directors has approved a final dividend of ₹5.00 per equity share (face value of ₹10) for the previous financial year. This final dividend, combined with the previously declared interim dividend of ₹5.00 per share, brings the total dividend to ₹10.00 per equity share, representing a 100% dividend payout.

Business Update

Majestic Auto Limited continues to make progress on its real estate front. The company had previously entered into an agreement with Cyrrus Manufacturing LLP to sell a plot situated at B-6, B-7, and B-9 Ecotech I Extension, Greater Noida, for a total consideration of ₹128.50 crore. As of the end of the quarter, the company has received an advance of ₹101.74 crore, with ₹4.08 crore received during the current quarter.

Conclusion

Majestic Auto Limited's Q1 results demonstrate the company's strong financial position and operational efficiency. With robust growth in both standalone and consolidated figures, coupled with a generous dividend payout, the company continues to create value for its shareholders while maintaining a solid foundation for future growth in the real estate and management services sector.

The Board of Directors' meeting approved these financial results after they were reviewed by the Audit Committee. The results have also been subject to a limited review by the company's statutory auditors, ensuring transparency and compliance with regulatory requirements.