Avenue Supermarts Limited to acquire shopping mall and part of multiplex in Tirupur from Velan Hotels Ltd

A Memorandum of Understanding (MoU) entered into on 10th November 2020 between Velan Hotels Ltd and M/s. Avenue Supermarts Limited, Mumbai, the proposed purchaser non-related party for sale of Company's Shopping Mall and part of MultiPlex properties with the consent of M/s. RARE Asset Reconstruction Limited, which was assigned the Company's debt together with all security interest and all rights of the company by the Banks and has the symbolic possession of the entire properties of the Company. In addition to the above properties, the Company owns Hotel proPerties at Tirupur and Coonoor properties of Biomass based Renewable energy plant and vacant land of convention hall, all of which are non functional as of now and are located in Tirupur, Tamilnadu. After deducting the property tax dues, Electricity Bill dues and other statutory dues that are only directly associated with this Property (Shopping Mall). The entire sale proceeds will be adjusted towards our proposed revised One-Time Settlement (OTS) to be approved / agreed by M/s. RARE Asset Reconstruction Limited, the details of which will be concluded once the sale date is finalized.

The consideration to be received is Rs.35.4375 Crores for Shopping Mall (100%) & for Multiplex (41.19%).

Shares of Avenue Supermarts Ltd was last trading in BSE at Rs.2423.3 as compared to the previous close of Rs. 2368.6. The total number of shares traded during the day was 44585 in over 4979 trades.

The stock hit an intraday high of Rs. 2505 and intraday low of 2390. The net turnover during the day was Rs. 109374873.

Shares of VELAN HOTELS LTD. was last trading in BSE at Rs.2.67 as compared to the previous close of Rs. 2.55. The total number of shares traded during the day was 31399 in over 21 trades.

The stock hit an intraday high of Rs. 2.67 and intraday low of 2.43. The net turnover during the day was Rs. 81225.

Source : Equity Bulls

Keywords