I think so. There was a virtual launch event and the website is up and running.
https://maxhouse.in/
https://www.maxhouse.in/wp-content/uploads/2020/06/Max-House-Presentation.pdf
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Seems low key compared to launch of max towers. Of course, the current climate isn’t ideal but one would still expect some kind of fan fare.
Thought they would announce the launch with a press release at least. Oh well…
Can anyone help me in understanding the impact of the recent stake sale of Max healthcare on maxvil?
As with all complicated businesses, it seems the max venture that held the max healthcare stake and sold it is not really the listed max ventures…if true that’s a “bingo” (ITC pun intended as looking to convert this laggard to something like an ITC at opportune time) moment for me…pls correct me if wrong those who follow max ventures closely.
Disc: Not a buy/sell recommendation. Can be completely wrong in my assessments…
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yes, that is Max Ventures Private limited, a private promoter company directly held by Analjit Singh. That private company is different from listed entity, and the private company holds shares in all other Max group companies.
BTW, Max Healthcare although having access to the Max brand (due to Radiant merger with Max India a few months back), is no more held by Max group. Their shareholding is in single digits and they are continuously selling to reduce it or exit completely. Abhay Soi & KKR (Kayak) are the current promoters of Max Healthcare.
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From my understanding, Max Group is on a selling spree of their stake recently
- In Max Healthcare, where they exited majority of their stake for close to 1050 cr.
- In MFSL, they sold close to 6% of stake over the past 2 months for close to 960 cr.
They stated their intent to bring down their promoter level debt for which they pledged a majority amount of their stake in Max India and MFSL (of Max Ventures Investment Holdings Private Limited).
MFSL June 2020 SHP - 91.52% of promoter holding is pledged:
Max India (de-merged) SHP as on August 27, 2020 - 81.89% of promoter holding is pledged.
After the recent stake sale in Max Healthcare and MFSL, the pledged shares is
- Down to 75.58% of their remaining stake in MFSL - https://www.bseindia.com/xml-data/corpfiling/AttachLive/626FB565_529B_4B27_B57B_B14F25F5E5DA_191652.pdf
- Down to 78.09% of the stake in Max India - https://www.bseindia.com/xml-data/corpfiling/AttachLive/DEF28BC8_3426_49DF_AB1B_17D439002AF0_184351.pdf
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Maybe the entirety of their focus will shift to Antara and MaxVIL?
Is this a possibility?
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There is no such comment from the promoters but their actions make me feel that way.
They have upped their stake in MaxVIL by around 2.5% even after the rights issue.
They are looking to increase their SHP % in Max India by not participating in the buyback.
On the other hand, they are trimming stake in MFSL to get the pledge overhang under control.
However, the recent finCEN thing on Mr. Singh is a bit concerning - https://indianexpress.com/article/express-exclusive/fincen-files-cyprus-to-isle-of-man-over-100-transactions-linked-to-max-chairman-6606773/
The management has denied the allegations with strong words (including legal action on the media house which published the article if needed) but it is worth keeping an check on this for any further developments.
Don’t mind waiting for the maxvil story to play out.
I just hope that they don’t try and do funny things like merge Antara and maxvil or carve out max estates or MSFL or any other random thing. You can reason out anything in today’s world but it should make strong business sense.
Counting on Delhi One project win to work out. The management has also said that they are in discussions to take over other distressed opportunities as well.
One thing that could help is the huge land bank available with Singh and family. Makes acquisition easier. Nykaa stake sale could also be another positive. MSFL is anyway generating a lot of cash in the near term. This could be used to bring down debt. And then there is the relationship with New York Life or other PE players who they could ring in as partners. Lots of positives to consider. But one funny move could destroy it all.
Let’s see how it goes!
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I have learnt that good businesses have reasons to give better results and profits always while bad businesses have reasons to give losses always. Seems we all have been waiting too long for a turnaround from bad to good…
This time one of reason for loss is Azure hospitality fair value loss hit taken to P&L of approx 27 Cr.
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Non-cash loss… Fair value can go up once hospitality biz environment picks up right…?
Otherwise, strong profits from films biz… Updates awaited from real estate vertical…
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EBITA up 30% QoQ, 100% YoY.
Debt for packaging reduced by 50 Cr.
Good decision of taking goodwill impairment 27 cr.
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Max Estates is touted to be the growth driver for MaxVIL but it is not showing promising results so far.
Packaging films biz is doing well due to tailwinds but it is a cyclical business. Also whatever growth is supposed to be seen from increase in capacity is already reflecting in the results and is not a growth vertical anymore.
Cashflows from packaging biz is self sufficient to reduce debt of itself and is in no significant way going to help in capital needed for Real Estate vertical as of now.
Real estate - Revenue 11.1 cr vs. 4.69 cr (+137%) QoQ but the PBT is 1.5 cr vs. 1.3 cr QoQ (+15% only). Results are not good in my view.
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Also not surprising that the company didn’t put out a media release yet for this quarter results. What will be the title of the media release and the content? 
- They cannot highlight positive packaging biz performance quarter after quarter repeatedly when they themselves are projecting Max Estates as the growth driver for MaxVIL.
- Just guessing if the +137% percent increase from Real estate biz revenue QoQ is from the sale of residual 222 Rajpur villas? In that case, profits might be miniscule as seen in the PBT.
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Mr. Padhu… I’m not so sure
The last 6 months have been difficult for all kinds of businesses. Even though MaxVIL hasn’t been affected a whole lot, you gotta agree that only a few would want to relocate to a luxury office or buy a multi-crore rupee villa in Dehradun.
Max estates has a significant amount of cash on hand (100+ crore, if I’m not wrong) and more of it is coming along in the form of PE
It need not depend on the films biz for capital
Yeah it’s frustrating that EBIT has increased marginally even after 100% increase in rental income. Maybe max house has been capitalized and now depreciation comes into play? I don’t know…
Cannot write off MaxVIL just yet
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Investor Presentation Q2 FY21: https://www.bseindia.com/xml-data/corpfiling/AttachLive/e49ea194-0eee-4b60-8a3c-8f5b275cb4c9.pdf
As expected, this explains why there is no big jump in PBT when there was 136% increase in RE revenue. If the increase in revenue was due to leasing and still there was no jump in PBT, it would have been a bigger concern.
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Residual stake in Nykaa exited for 37.7 cr.
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