Postal Ballot Notice dated 14/01/2026 is attached herewith.
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Awaiting price reaction for this filing.
Velan Hotels has sent a Postal Ballot notice to shareholders seeking approval for two special resolutions. The first is to sell company assets (the Velan Hotel property and adjacent land in Tirupur) for up to Rs. 45 Crores to non-related party buyers. The second is to sell additional vacant land parcels to related parties — Executive Director Mr. M.R. Gautham and his son Mr. G. Thannvheer (members of the promoter group) — or other willing buyers. E-voting runs from January 21 to February 19, 2026, with results expected by February 23, 2026. The company has been classified as an NPA since 2014, with its debts assigned to RARE Asset Reconstruction Limited in 2017. The asset sales are aimed at repaying outstanding dues to RARE ARC under a One-Time Settlement, and also settling Rs. 36.12 crore of unsecured loans given by promoter group entities to keep the company afloat.
This signals significant financial distress and a potential major restructuring for shareholders — the company is selling off its hotel property and key land parcels in Tirupur to clear NPA-era debts and promoter loans. The Rs. 45 Crore asset sale cap and related party transactions indicate the company is monetizing its core assets, which may leave it with limited operating capacity going forward.