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

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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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.02% | -4.62% | +8.57% | +4.68% | -27.74% | +240.06% |