Max Estates Limited has approved the acquisition of an 84.7-acre land platform in Sector 3, Najafgarh, Delhi, through the acquisition of nine land-owning companies. The transaction, valued at approximately ₹420.23 crore, will be discharged via a preferential share swap. This strategic move is expected to significantly enhance Max Estates’ long-term development pipeline in the National Capital Region, providing approximately 4-6 million sq. ft. of development potential.
Max Estates Approves Major Delhi Land Acquisition
Max Estates Limited’s Board of Directors has given its in-principle approval for a significant acquisition, securing an entire ownership interest in nine land-owning companies. These companies collectively hold an approximately 84.7-acre land platform situated in Sector 3, Najafgarh, Delhi. This acquisition is envisioned as a single, integrated transaction.
Strategic Land Parcel Acquisition
The acquisition is strategically driven by the opportunities presented by the Master Plan for Delhi-2047 and the momentum in land pooling initiatives. Max Estates believes this move will secure a substantial long-term development platform within the National Capital, offering approximately 4-6 million sq. ft. of development potential. This is expected to strengthen the company’s development pipeline and enhance its presence in Delhi as a core growth market.
Transaction Details and Consideration
The total consideration for the 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, aggregating up to approximately ₹4,20,23,14,295. The transaction is subject to member and regulatory approvals.
Company Restructuring
Upon completion of the proposed acquisition, each of the nine land-owning companies will become a wholly-owned subsidiary of Max Estates Limited. The deal involves the acquisition of all equity shares and outstanding compulsorily convertible debentures (CCDs) of these companies.
Valuation and Fairness Opinion
The valuation of the transaction and the share-exchange ratios are supported by a valuation report from KPMG Valuation Services LLP, along with fairness opinions from Motilal Oswal Investment Advisors Limited. Land valuation reports were also provided by Cushman & Wakefield India Private Limited and iVAS Partners.
Source: BSE
