Under Regulation 30 readwith Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''SEBI Listing Regulations''), we wish to inform that ....
MAJESAUT · price
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Majestic Auto Ltd has signed an agreement on August 14, 2025 to sell its entire 80% stake in subsidiary Emirates Technologies Private Limited (ETPL) for a total consideration of Rs. 196 crore. The transaction is expected to be completed by September 14, 2025, and the company has already received an advance of Rs. 124.66 crore on the signing date. ETPL's net worth stood at Rs. 72.49 crore, contributing about 11.60% to Majestic Auto's consolidated net worth. The buyers are a group of six entities and individuals, primarily from the real estate sector in Noida, and none are connected to the company's promoters. The sale is outside any scheme of arrangement and shareholder approval was already obtained via a special resolution passed in the August 25, 2023 AGM.
The company is set to receive Rs. 196 crore in cash from this divestment, which is a sizeable amount relative to its net worth and should strengthen its balance sheet. Since buyers are unrelated third parties and ETPL is not a related party transaction, the deal is a clean exit from a non-core subsidiary and is likely to be viewed positively by shareholders.