Max Ventures – A Unique Demerger Opportunity

As per concall, the new project bidded under CIRP is the Delhi One Project adjacent to Max Towers. Matter is sub-judice and 100% approvals are not yet received. Approvals delayed due to Covid by 3-6 months.

As per management commentary:

  1. No dilution of shareholding needed. Approx 3 million sft total area and roughly 50% is unsold inventory. Mix of Residential, Retail and Commercial.
  2. Max Estates to take up entire project and deliver sold inventory also. Lease in case of unsold commercial and sell in case of unsold residential.
  3. Asset light approach. NCLT bid structured such that cash outflows will be deferred such that future inflows will be matched.
  4. No disclosure on project cost and more finer details since matter is sub-judice and 100% approvals not received.

Did some research online and below is the data I could find.

Bidders list shows Max Estates as one of them. Source: http://www.delhione.in/pdfs/EOI-person-final.pdf

Source: http://www.delhione.in/pdfs/Revised-teaser-New-30-04-2019.pdf

Looks interesting to see how they will deliver such a big project in a way efficiently. Can be a make or break for the business based on execution. Views invited.

Disc: Invested.

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