Majestic Auto Receives ₹70.8 Crore in Second Installment from Emirates Tech Stake Sale

1 min read     Updated on 29 Aug 2025, 07:14 AM
scanx
Reviewed by
Ashish ThakurScanX News Team
whatsapptwittershare
Overview

Majestic Auto Limited has received a second payment of ₹70.80 crore from the sale of its 80% stake in Emirates Technologies Private Limited (ETPL). The total consideration for the transaction is ₹196.00 crore, with ₹195.45 crore already received and ₹0.55 crore pending. The sale agreement was entered on August 14, 2023, with completion expected by September 14, 2023. The buyers include Rhombus Infrazone Private Limited and several individuals, none associated with Majestic Auto's promoter group. Shareholder approval for the sale was obtained on August 25, 2023.

17977447

*this image is generated using AI for illustrative purposes only.

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:

Payment Amount (in ₹ crore) Status
First Installment 124.66 Received
Second Installment 70.80 Recently Received
Remaining Amount 0.55 Pending

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.

Historical Stock Returns for Majestic Auto

1 Day5 Days1 Month6 Months1 Year5 Years
+0.02%-4.62%+8.57%+4.68%-27.74%+240.06%
Majestic Auto
View in Depthredirect
like19
dislike

Majestic Auto Limited to Divest 80% Stake in Emirates Technologies for ₹1,960 Crores

1 min read     Updated on 14 Aug 2025, 11:52 PM
scanx
Reviewed by
Riya DeyScanX News Team
whatsapptwittershare
Overview

Majestic Auto Limited has agreed to sell its 80% stake in Emirates Technologies Private Limited (ETPL) for ₹1,960 crores. The buyers include Rhombus Infrazone Private Limited, Equilateral Techpark Private Limited, and four individuals not associated with Majestic Auto's promoter group. An advance of ₹1,246.59 crores has been received, with the transaction expected to complete by September 14, 2025. The sale, representing 11.60% of Majestic Auto's consolidated net worth, was approved by shareholders and complies with SEBI regulations.

16741347

*this image is generated using AI for illustrative purposes only.

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.

Historical Stock Returns for Majestic Auto

1 Day5 Days1 Month6 Months1 Year5 Years
+0.02%-4.62%+8.57%+4.68%-27.74%+240.06%
Majestic Auto
View in Depthredirect
like19
dislike
More News on Majestic Auto
Explore Other Articles
324.25
+0.05
(+0.02%)