Transaction Details

Land Acquisition: Max Estates Limited has acquired approximately 84.71 acres of land in West Delhi, marking the company's first residential land bank inside the National Capital Territory (NCT) of Delhi.

Consideration Structure: Total consideration of approximately ₹420.2 crore, settled entirely through equity issuance (non-cash transaction). No cash consideration involved in the transaction.

Transaction Structure: The land is held through 9 land-owning companies which will become wholly-owned subsidiaries of Max Estates Limited.

Valuation Metrics:

  • Land value: Approximately ₹4.95 crore per acre
  • Implied cost per square foot: Approximately ₹1,000 (based on FAR 2.0)
  • Land as percentage of GDV: Less than 5% compared to industry benchmark of 20-25%

Estimated Development Value: Gross Development Value (GDV) estimated at ₹10,000-12,000 crore to be developed over the next few years.

Developable Area: 4-6 million square feet of developable area subject to applicable planning parameters and approvals.

Equity Issuance Details

Share Issuance: Approximately 70 lakh shares to be issued at ₹597.50 per share through preferential allotment to promoters.

Share Price: ₹597.50 per share (at a premium to SEBI formula)

Shareholding Impact:

  • Promoter and promoter group: Increases from 45.3% to 47.1%
  • New York Life: Decreases from 20.4% to 19.6%
  • Public: Decreases from 34.3% to 33.3%

Regulatory Status and Approvals

Current Status: Transaction is subject to shareholders and regulatory approvals.

Approval Process: Requires approval from Audit Committee → Board → Members (EGM) → BSE/NSE.

Valuation Process

Independent Land Valuations: Conducted by Cushman & Wakefield and iVAS Partners

Independent Valuation: Conducted by KPMG Valuation Services LLP (Big Four accounting firm)

Share-Exchange Ratio: Determined by KPMG Valuation Services LLP

Fairness Opinion: Provided by Motilal Oswal (SEBI Category I Merchant Banker)

Strategic Rationale

Pipeline Addition: Adds to current residential pipeline of ₹16,150 crore GDV from Q2FY27

Market Expansion: Provides entry into Delhi geography, complementing existing presence in Noida-Gurugram markets

Capital Efficiency: Land acquisition at less than 5% of GDV against industry norm of 20-25%

Balance Sheet Preservation: No cash outflow, preserving cash for other land opportunities across Noida, Gurugram and new markets

Development Strategy: Large parcel enables phased launches and master-planned ecosystem development over multi-year horizon

Infrastructure Context

Urban Extension Road-II (UER-II): Commissioned August 2025, connecting Alipur to Mahipalpur via Mundka, Bakkarwala, Najafgarh and Dwarka

Dwarka Expressway (Delhi section): Commissioned August 2025, links Dwarka, Gurugram border, and IGI airport

Delhi Metro Grey Line: Operational

DDA Land Pooling: Consortium formation underway in adjoining sub-sectors under Delhi Master Plan 2047

Development Framework: Subject to land development under the aegis of the Delhi Master Plan 2047

Additional Information

Company Address: L-20, Max Towers, Sector – 16B, DND Flyway, Noida, Uttar Pradesh - 201 301