MEMax Estates544008Subsidiary or JV

Board approves new wholly-owned subsidiary and ₹350 crore corporate guarantee; QIP utilisation report reviewed

Max Estates' board met on November 4, 2026 and approved three items.

By ScoutQuest · Wed 4 Nov 2026, 9:40 PM IST · 3 min read

New WOS paid-up capital

INR 1,00,000 (10,000 shares of INR 10 each)

Corporate guarantee approved

term loan of up to ₹350 crore by Max Estates 128 Private Limited

QIP utilisation (Q2 FY27)

Rs. 800.00 crore issue, 796.06 utilised, 3.94 unutilised, deviation from objects Nil

What the board approved

Max Estates' board met on November 4, 2026 and approved the incorporation of a new wholly-owned subsidiary, a corporate guarantee for a subsidiary's borrowings, and took on record the quarterly monitoring agency reports on how the money raised through the Qualified Institutional Placement (QIP) has been used.

A new wholly-owned subsidiary

• The new company will carry out real estate activities, the same line of business as the company.
• Proposed authorised share capital: INR 10,00,000, divided into 1,00,000 equity shares of INR 10 each.
• Proposed paid-up capital: INR 1,00,000, divided into 10,000 equity shares of INR 10 each.
• The entire share capital will be subscribed in cash, and 6 nominees will hold 1 equity share each on behalf of the company.
• The name is being finalised, subject to approval by the Ministry of Corporate Affairs.
• Once incorporated, the new company will be a related party.

Corporate guarantee of up to ₹350 crore

• The board approved a corporate guarantee for the term loan facility of up to ₹350 crore proposed to be availed by Max Estates 128 Private Limited, a wholly-owned subsidiary.
• The guarantee is to be provided as a condition precedent to the facility and stays valid until Max Estates 128 fully discharges its obligations under the facility documents.
• The update states this will be a contingent liability, with no immediate financial outflow arising solely from issuing the guarantee.
• Neither the promoter nor the promoter group or other group companies have any interest in the transaction, except through Max Estates 128 being a wholly-owned subsidiary.

QIP monitoring report for the quarter ended September 30, 2026

• Issue size: Rs. 800.00 crore, through 1,33,89,121 equity shares at ₹ 597.50 per share.
• Issue expenses: 20.42 crore, leaving net proceeds of 779.58 crore.
• Amount utilised at the end of the quarter: 796.06 crore, out of 800.00 crore.
• Total unutilised amount: 3.94 crore.
• Deviation from the objects of the issue: Nil.
• The unutilised 3.94 crore sits in fixed deposits with Yes Bank maturing 12-04-2027, earning 7%. Of a Rs.3.25 crore deposit, Rs.3.04 crore came from QIP proceeds and Rs.0.21 crore from internal funds.
• The monitoring agency notes that the placement document does not specifically mention deployment of unutilised issue proceeds in the subsidiaries' account, and says the board may take note of the same.

Where deployment stands

• The offer document scheduled ₹350.00 crore of land-related deployment by March 31, 2025 and ₹300.00 crore by March 31, 2026.
• Actual use: 328.44 crore till end of FY25, 295 crore in FY26, 22.62 crore in Q1FY27 and 0.00 in Q2FY27.
• Pending utilisation: 3.94 crore.
• The report records a delay of 23 days for the amount proposed to be used by March 31, 2025, and a delay for the March 31, 2026 tranche where the exact number of days is stated as not ascertainable.
• General corporate purposes were fully used and shown as completed in Q2FY26, with no delays.

What a reader can take away

• The subsidiary being set up is small in capital terms, but it is the vehicle structure that matters, not the initial capital.
• The guarantee is a promise to pay if the subsidiary does not; it does not involve cash going out today, but it is a contingent liability to track.
• On the QIP, the monitoring agency reports no deviation from the stated objects, while flagging a delay against the original deployment schedule and a deployment point for the board to note.

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