An Asset sale agreement entered into between the Company and JP Associates Asia Pacific Private Limited, Coimbatore for sale of Company''s properties.
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Velan Hotels Ltd has signed an Asset Sale Agreement on January 13, 2026, with JP Associates Asia Pacific Private Limited (Coimbatore) to sell its hotel properties. The buyer is a non-related party, and Rs. 5 Crores has already been received as advance money. These properties have not contributed any revenue since March 2020 and are currently under the symbolic possession of RARE Asset Reconstruction Limited (ARC). The sale proceeds will be used to pay off the company's entire remaining dues to the ARC under a One-Time Settlement (OTS) arrangement. The deal is expected to close before March 31, 2026, subject to shareholder approval via postal ballot or EGM.
This is a significant event for shareholders as the company is selling its core hotel assets to clear debt obligations. While it relieves the company of its financial burden with the ARC, it also means Velan Hotels is divesting its primary revenue-generating (though currently dormant) business, leaving questions about future business direction.