An addendum entered into between the company and the buyer and settlement of OTS amount to RARE ARC
Price
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Velan Hotels Ltd has executed an addendum to its Asset Sale Agreement with J.P. Associates Asia Pacific Private Ltd dated 28/04/2026, extending the sale deed registration deadline to 15th June 2026. The company is selling its hotel property in Tirupur, Tamil Nadu for Rs. 37.17 crore. Of this, Rs. 35.12 crore (excluding TDS) has been received as advance, with balance Rs. 1.68 crore payable before registration. Part of the advance was used to settle the company's entire secured debts with RARE Asset Reconstruction Ltd under a One-Time Settlement (OTS), resulting in a No-Due Certificate issued on 30/04/2026. The company is now debt-free on secured loans. The buyer is sourcing financing for the acquisition. The hotel property contributed zero revenue since March 2020.
The company has become secured-debt free after years of debt burden, which is a positive development for shareholders. However, selling a non-operational hotel property reduces the company's asset base and future revenue potential, suggesting a smaller, leaner business going forward.