Max Estates Limited’s Board of Directors has approved the incorporation of a wholly-owned subsidiary and will provide a corporate guarantee for a term loan facility of up to ₹350 crore. The subsidiary, ‘Max 128’, is intended for real estate activities. Additionally, the board reviewed reports on the utilization of funds from a Qualified Institutional Placement and Preferential Issue, confirming no deviations from stated objectives.
Board Approves Strategic Initiatives
Max Estates Limited announced today that its Board of Directors has given the green light for the incorporation of a wholly-owned subsidiary. This new entity, to be named ‘Max 128 Private Limited’ (“Max 128”), will focus on real estate activities, aligning with the company’s core business operations.
Corporate Guarantee for Term Loan
In a move to support its expansion and financial operations, the board also approved the provision of a corporate guarantee. This guarantee will back a term loan facility of up to ₹350 crore that Max 128 intends to avail. The guarantee is a condition precedent to the facility and will remain valid until all obligations under the loan are discharged. Notably, the company stated that neither the promoter nor the promoter group have any interest in this transaction, other than through their ownership of Max 128. The corporate guarantee is classified as a contingent liability, with no immediate financial outflow expected from its issuance.
Review of Funding Utilization
The Board further reviewed reports from CARE Ratings Limited concerning the utilization of proceeds from a Qualified Institutional Placement (QIP) and a Preferential Issue of Convertible Warrants. These reports, covering the quarter ended September 30, 2026, confirmed that the funds have been utilized as per the stated objectives, with no significant deviations identified.
The meeting commenced at 17:30 hours IST and concluded at 19:38 hours IST on November 4, 2026.
Source: BSE
