Valor Estate Limited (VEL), formerly known as D B Realty Limited, has provided shareholders with crucial guidance on apportioning acquisition costs for equity shares following the demerger of its hospitality business into Advent Hotels International Limited (AHIL). This move comes in the wake of a significant corporate restructuring sanctioned by the National Company Law Tribunal.

Demerger Details

The composite scheme of amalgamation and arrangement, which became effective on July 1, 2025, involves the demerger, transfer, and vesting of VEL's hotel business into AHIL on a going concern basis. Under this arrangement, shareholders received 1 AHIL share for every 10 VEL shares held as of the record date, July 18, 2025.

Cost Apportionment Guidance

VEL has advised shareholders to apportion their original acquisition costs as follows:

• 81.47% attributed to VEL shares
• 18.53% attributed to AHIL shares

To illustrate this apportionment, the company provided an example:

Tax Implications

The scheme qualifies under the provisions of the Income Tax Act, 1961. Key points for shareholders to note include:

• The allotment of AHIL shares is not considered a transfer under Section 47(vid) of the Act.
• As per Explanation 1(i)(g) to Section 2(42A), the original acquisition date of VEL shares will be treated as the acquisition date for AHIL shares.

Shareholder Advisory

Jignesh Shah, Company Secretary of Valor Estate Limited, emphasized that this communication is intended solely for general guidance. Shareholders are strongly advised to consult their own tax advisors to understand the specific implications in their individual cases. The company has explicitly stated that it assumes no express or implied liability in relation to this guidance.

VEL has submitted this information to both the BSE Limited and the National Stock Exchange of India Limited, ensuring transparency and compliance with listing regulations.

As the real estate sector continues to evolve, this demerger represents a strategic move by Valor Estate Limited to potentially unlock value in its hospitality business. Shareholders and market watchers will be keen to observe how this restructuring impacts the company's focus and performance in the coming months.

Advent Hotels International Limited , a prominent player in the hospitality sector, has announced a significant restructuring of its board of directors, appointing six new members effective July 21, 2025. This move comes as part of a composite scheme involving Valor Estate Limited and Esteem Properties Private Limited.

New Board Composition

The newly appointed directors include three independent members and three non-executive directors:

Independent Directors

• Ajoy Mehta (Chairman)
• Rajeev R A
• Maryam Khan (Woman Director)

Non-Executive Directors

• Jayvardhan Goenka
• Arshad Balwa
• Sanjana Goenka

These appointments are subject to shareholder approval.

Board Restructuring Details

As part of this restructuring, Satish Agarwal has resigned from his position as Non-Executive Director, effective the same date. The board now comprises a total of eight directors, including Managing Director and CEO Rahul Pandit, and Mohammed Balwa, who was appointed earlier.

Key Points of the Restructuring

1. Diverse Expertise: The new board members bring a wealth of experience from various sectors, including civil services, urban development, finance, and real estate.

2. Governance Compliance: Following these appointments, Advent Hotels International has constituted various statutory committees in compliance with applicable laws.

3. Family Connections: It's worth noting that some of the new directors have familial ties to Valor Estate Limited (formerly D B Realty Limited). Jayvardhan Goenka is the son of Vinod Goenka, Chairman and Managing Director of Valor Estate Limited. Similarly, Arshad Balwa is the son of Shahid Balwa, Vice Chairman and Managing Director of Valor Estate Limited.

4. Industry Experience: Several of the new directors, such as Jayvardhan Goenka and Arshad Balwa, bring significant experience in real estate development, which could be valuable for Advent Hotels International's future strategies.

Implications for Advent Hotels International

This board restructuring appears to be a strategic move to strengthen Advent Hotels International's leadership team. The diverse backgrounds of the new directors, ranging from civil services to real estate and finance, suggest that the company is positioning itself for potential growth and diversification in its operations.

The appointment of experienced independent directors like Ajoy Mehta, a former IAS officer with extensive experience in urban development and public administration, as the Chairman, indicates a focus on strong corporate governance.

As these changes take effect, stakeholders will be watching closely to see how this new board composition influences Advent Hotels International's strategic direction and performance in the competitive hospitality sector.