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Atlas Cycles Approves Sale of Sonipat Unit Land

Mumbai, 25 July 2024 – Atlas Cycles (Haryana) Limited has officially announced the sale of approximately 20 acres of land from its non-operational Sonipat unit. This decision follows the recommendations of the Capital Asset Sale Committee and has been approved by the Board of Directors through a resolution by circulation dated 24 July 2024.

Key Details of the Land Sale

Approval and Authorization: The Board of Directors has approved the sale of the Sonipat unit land and authorized Mr. Chander Mohan Dhall, Whole Time Director, and Mr. Narendra Pal Singh, Chief General Manager (Co-ordination), to enter into a sale agreement with the buyer, M/s. Mansan Builders Private Limited.

Transaction Details:

• Buyer: M/s. Mansan Builders Private Limited (CIN U42101UP2023PTC192392)
• Registered Office: 404, Kanha Homes Yamun Puram, Bulandshahar, Uttar Pradesh-203001
• Consideration: Rs. 12,08,99,000/- per acre, with Rs. 10 Crore received as an advance payment.
• Total Land Value: Rs. 204.50 Crore, accounting for 49.50% of the company’s land value.

Operational Status and Financial Impact: The Sonipat factory has been non-operational since 27 February 2018, contributing nil to the company’s operational profit. The financial details for the last financial year are as follows:

• Turnover: Company - Rs. 6.36 Cr., Sonipat Unit - Rs. 0.13 Cr. (2.04%)
• Value of Land: Company - Rs. 413.10 Cr., Sonipat Unit - Rs. 204.50 Cr. (49.50%)

Compliance and Approvals:

• Shareholder Approval: Special resolution passed in the 73rd AGM held on 5 July 2024.
• Votes Casted: In favor - 6,68,150; Against - 590.
• Agreement Date: 24 July 2024
• Completion Date: Expected by 24 November 2024.

Transaction Classification: The sale does not fall within the scope of related party transactions and is outside any scheme of arrangement.