Velan Hotels Limited provides update on Memorandum of Understanding for sale of hotel property in Coonoor

A Memorandum of Understanding (MOU) entered into between Velan Hotels Limited, M/s. Stanes High School Association, Coonoor and M/s. Atulit Developers LLP, Coonoor, the Proposed Purchasers, Unrelated Parties today (September 15, 2021) for the sale of the Company’s hotel property located in Coonoor, Nilgiris District Tamil Nadu with the consent of M/s. RARE Asset Reconstruction Limited which has been assigned the debts of the Company and all securities and rights of the Company by the Banks and has nominal possession of all of the Properties of the Company.

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

1. On 2.81 acres of land, M/s. Stanes High School Association, one of the proposed buyers, will obtain 0.52 acre of land for a total sale consideration of Rs. 5,80,00,000/- for adjustment of the amount paid by them as an advance for the previous purchase of the hotel property in question.

2. On 2.81 acres of land, M/s. Atulit Developers LLP, Coonoor, another proposed buyer, will obtain 2.28-7/16 acres of land with buildings thereon for a total sale consideration of Rs. ll,l1,l1,11l/-. As a total consideration, Rs. 10 Crore will be paid to settle part of the outstanding debts to M/s. RARE ARC in terms of the Company’s Final Single Settlement Offer (OTS) approved by said ARC on 20th May 2021, Rs. 1.00 Crore payable at M/s. Stanes High School Association by M/s. Atulit Developers LLP and the sum of Rs. 11,11,111/- to TDS payable on the above two transactions.

The shares of Velan Hotels Ltd. were last trading in BSE at Rs. 4.04 from 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 an intraday low of 3.72. The net turnover during the day was Rs. 5507.

Source: Stock market bulls

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