Max Estates Limited has approved the acquisition of an entire ownership interest in nine ‘Land Owning Companies,’ which collectively hold an approximately 84.7-acre land platform in Sector 3, Najafgarh, Delhi. This strategic acquisition, valued at approximately ₹4,202 crore, will be discharged through a preferential issue and allotment of fully paid-up equity shares via a share swap. The transaction aims to strengthen Max Estates’ long-term development pipeline and establish Delhi as a core growth market.
Max Estates Approves Major Land Acquisition and Share Swap
In a significant strategic move, Max Estates Limited’s Board of Directors has approved the acquisition of the entire ownership interest in nine ‘Land Owning Companies.’ These entities collectively hold a substantial 84.7-acre land platform located in Sector 3, Najafgarh, Delhi. This acquisition is set to bolster the company’s development pipeline and solidify its presence in the National Capital region.
Deal Rationale and Structure
The Proposed Acquisition is intended to capitalize on opportunities arising from the Master Plan for Delhi-2047, particularly the land pooling framework. The acquired 84.7-acre platform is estimated to represent approximately 4-6 million sq. ft. of development potential. The acquisition is expected to enhance the company’s long-term development strategy, provide greater visibility for future project launches, and establish Delhi as a key growth market alongside Noida and Gurugram. The flexibility offered by the land platform allows for phased development.
Consideration via Share Swap
The consideration for this acquisition will be discharged through a preferential issue and allotment, for consideration other than cash, by way of a share swap. Max Estates will issue up to 70,33,162 fully paid-up equity shares of face value ₹10 each, at an issue price of ₹597.50 per share. This amounts to an aggregate consideration of up to ₹4,20,23,14,295 (Rupees Four Hundred Twenty Crore Twenty-Three Lakh Fourteen Thousand Two Hundred and Ninety-Five only). Upon completion, each of the nine Land Owning Companies will become a wholly-owned subsidiary of Max Estates.
Valuation and Approvals
The transaction has been supported by a valuation report from KPMG Valuation Services LLP and a fairness opinion from Motilal Oswal Investment Advisors Limited. Land valuation reports were also provided by Cushman & Wakefield India Private Limited and iVAS Partners. The proposed acquisition and preferential issue are subject to the approval of the company’s Members and receipt of in-principle approvals from the BSE Limited and the National Stock Exchange of India Limited.
Timeline for Completion
The composite transaction is tentatively expected to be completed on or before October 9, 2026, contingent upon receiving all necessary approvals, including shareholder and stock exchange approvals, and the fulfillment of conditions outlined in the Share Purchase and Share Subscription Agreement.
Source: BSE
