Praveg Limited has informed the stock exchanges about the termination of its inventory arrangement with Mahindra Holidays and Resorts India Limited (MHRIL) for one of its resort properties in Daman. The announcement, made on February 24, 2026, marks a strategic adjustment in the company's partnership arrangements while maintaining broader collaboration with the hospitality major.

Termination Details

The company has decided to terminate the inventory arrangement specifically for Praveg Beach Resort Lighthouse in Daman, with the termination becoming effective from June 7, 2026. This decision follows the terms and conditions stipulated in the original agreement between the two parties.

Continued Partnership

Despite the termination for the Daman property, Praveg Limited has clarified that the inventory arrangement with MHRIL will continue to remain in force for all other properties of the company. This selective termination indicates a focused approach to property management while preserving the broader strategic partnership.

Business Impact Assessment

The company has emphasized that the exit from the inventory arrangement for the Daman property has been effected mutually in the ordinary course of business. Praveg Limited will continue to operate and manage the said property independently following the termination of the arrangement.

Management has assured stakeholders that this termination does not have any material adverse impact on the company's operations, financial position, or business prospects. The decision appears to be part of routine business optimization rather than any strategic shift away from partnership arrangements.

Background Context

This development follows an earlier intimation dated December 20, 2024, when Praveg Limited had announced entering into inventory arrangements with Mahindra Holidays and Resorts India Limited for certain properties. The current announcement represents a refinement of that broader arrangement, focusing the partnership on specific properties while allowing independent operation of others.

Praveg Limited has issued a comprehensive postal ballot notice dated February 12, 2026, seeking shareholder approval for three critical special resolutions that will shape the company's operational and leadership structure.

Key Resolutions Under Consideration

The postal ballot encompasses three major proposals requiring shareholder approval through electronic voting:

Financial Authorization and Strategic Investments

The first resolution seeks approval under Section 185 of the Companies Act, 2013, for advancing loans, providing guarantees, and securities to Praveg Safaris Tanzania Limited (PSTL) and other related entities. The aggregate amount outstanding at any point shall not exceed INR 20.00 crores. This financial support aims to facilitate capital expenditure projects and working capital requirements, including fixed asset purchases for principal business activities.

Leadership Transition and Governance Changes

Mr. Vishnukumar Vitthaldas Patel, currently serving as Chairman and Non-Executive Director, is proposed for appointment as Chairman and Managing Director for five years from February 12, 2026. Notably, he will serve without any remuneration, commission, perquisites, or monetary benefits, reflecting his commitment to the company's financial prudence and long-term value creation.

Mr. Patel brings over three decades of diversified experience in hospitality, tourism, events, and advertising. As a qualified Chartered Accountant and Management Consultant, he also serves as Chairman of UR Energy, Jhaveri Credits and Capital Limited, and V Square Projects Group.

Simultaneously, Ms. Bijal Kiran Parikh will transition from Executive Director to Non-Executive Director, effective February 12, 2026. With over 25 years of professional experience and an MBA in Finance, she will continue contributing through strategic direction and policy inputs while becoming liable to retire by rotation.

Voting Schedule and Process

The company has established a comprehensive timeline for the postal ballot process:

Financial Performance Context

The company's recent financial performance provides context for these strategic decisions:

The company has engaged National Securities Depository Limited (NSDL) for e-voting services, with M/s. ALAP & Co. LLP appointed as scrutinizer. Only shareholders whose names appear in the Register of Members as of the cut-off date Friday, February 13, 2026, are entitled to vote electronically. The voting rights will be proportionate to shareholdings in the paid-up equity share capital.