Velan Hotels Limited updates on MoU for sale of hotel property at Coonoor

A Memorandum of Understanding (MoU) entered into among Velan Hotels Limited, M/s. Stanes High School Association, Coonoor and M/s. Atulit Developers LLP, Coonoor, the proposed Purchasers, non-related parties today (15th September 2021) for sale of Company's Hotel Property situated at Coonoor, the Nilgiris District Tamilnadu with the consent of M/s. RARE Asset Reconstruction Limited which was assigned the Company's debts 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.

The sale consideration shall be as follows for the above property:

1. Out of 2.81 acres of land, M/s. Stanes High School Association, one of the proposed purchasers, will get 0.52 Acres of land for total sale consideration of Rs. 5,80,00,000/- for adjustment of the sum paid by them as advance for buying the subject hotel property earlier.

2. Out of 2.81 acres of land, M/s. Atulit Developers LLP, Coonoor, other proposed purchaser, will get 2.28-7/16 Acres of land together with the buildings standing thereon for total sale consideration of Rs. ll,l1,l1,11l/-. Out of total consideration, Rs. 10 Crore will be paid to settle a part of outstanding debts to M/s. RARE ARC in terms of company's final One-Time Settlement (OTS) offer approved by the said ARC on 20th May, 2021, Rs. 1.00 Crore to be paid to M/s. Stanes High School Association by M/s. Atulit Developers LLP and the sum of Rs. 11,11,111/- towards TDS payable on the above two transactions.

Shares of Velan Hotels Ltd. was last trading in BSE at Rs. 4.04 as compared to the previous close of Rs. 3.89. The total number of shares traded during the day was 1388 in over 11 trades.

The stock hit an intraday high of Rs. 4.08 and intraday low of 3.72. The net turnover during the day was Rs. 5507.

Source : Equity Bulls

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