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Max Estates buys 84.71 acre land for Rs 420 crore
Business Standard··29 Aug
Max Estates Ltd has acquired 84.71 acre in West Delhi via a Rs 420 crore share-swap. It will take 100 percent of nine promoter land firms and allot about 70 lakh shares at Rs 597.50. The firm expects Rs 10,000-12,000 crore revenue from projects on the site. The deal is Max Estates' first housing foothold inside Delhi.
Prism
What It Means For You
- Delhi homebuyers watching West Delhi launches may see a multi-year Max Estates pipeline of 4-6 million sq ft.
- The share-swap structure means no cash leaves the company balance sheet for the land purchase.
- Existing Max Estates projects remain in Gurugram and Noida while this parcel opens the Delhi municipal market.
What's Happening
- A Saturday regulatory filing said Max Estates signed a share purchase agreement for the nine land-holding companies.
- Consideration aggregates up to Rs 420.2 crore through equity issued at Rs 597.50 per share.
- Vice Chairman Sahil Vachani said the parcel sits in westward expansion under Master Plan 2047 near UER-II, Dwarka and IGI Airport.
How the Share Swap Is Structured
- Each of the nine land-owning companies becomes a wholly-owned Max Estates subsidiary on completion.
- The company said it already has a residential launch pipeline with Rs 16,150 crore revenue potential before this deal.
- An Economic Times account put land cost at Rs 4.95 crore per acre, under 5 percent of gross development value.
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