MEMax Estates544008Subsidiary or JV

Board approves new wholly-owned subsidiary and up to ₹350 crore corporate guarantee for a subsidiary's loan

Board approved a wholly-owned subsidiary — paid-up capital INR 1,00,000 (10,000 shares of INR 10 each), 100% cash.

By ScoutQuest · Wed 4 Nov 2026, 9:37 PM IST · 3 min read

New WOS Paid-up Capital

INR 1,00,000 (10,000 shares of INR 10 each), 100% cash

Corporate Guarantee Approved

up to ₹350 crore for term loan proposed for WOS Max Estates 128

QIP Utilisation (Q2 FY27)

Rs. 796.06 crore utilised, Rs. 3.94 crore unutilised

The board of Max Estates met on November 4, 2026 and approved three things — a new wholly-owned subsidiary, a corporate guarantee for a group company's loan, and took note of the quarterly monitoring report on its earlier fund raise.

New wholly-owned subsidiary

• The board approved the incorporation of a Wholly-owned Subsidiary; the name is being finalised subject to approval by the Ministry of Corporate Affairs.
• 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.
• Consideration is 100% subscription to the share capital in cash — 10,000 Equity Shares of INR 10/- each amounting to INR 1,00,000/-, which includes the holding of 1 equity share each by 6 nominees on behalf of the Company.
• The entity belongs to the real estate industry and shall carry out the same business activities, i.e. real estate activities. Once incorporated, it will be a Related Party.

Corporate guarantee of up to ₹350 crore

• The board approved a Corporate Guarantee for a 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 remains valid until Max 128's obligations under the facility documents are fully discharged.
• Neither the promoter, the promoter group nor other group companies have any interest in the transaction, except through Max 128 being a wholly-owned subsidiary.
• The company states the guarantee will constitute a contingent liability, with no immediate financial outflow arising solely from its issuance.

QIP monitoring report (quarter ended September 30, 2026)

• The QIP raised Rs. 800.00 crore through 1,33,89,121 equity shares at ₹ 597.50 per share.
• Issue expenses were Rs. 20.42 crore, leaving net proceeds of Rs. 779.58 crore.
• Planned use: Rs. 650.00 crore for land and land development rights, Rs. 129.58 crore for general corporate purposes and Rs. 20.42 crore for issue expenses.
• At the end of the quarter, Rs. 796.06 crore had been utilised and Rs. 3.94 crore was unutilised, held in fixed deposits with Yes Bank.
• The monitoring agency reported no deviation from the objects of the issue, but noted nil utilisation during the quarter towards land acquisition.

Delay flagged in the monitoring report

• As per the placement document, Rs. 350.00 crore was to be deployed by March 31, 2025; the company utilised Rs. 328.44 crore towards the stated object till FY25 — a delay of 23 days for that tranche.
• Utilisation continued after that: Rs. 295 crore in FY26 and Rs. 22.62 crore in Q1FY27, with nil in Q2FY27, leaving Rs. 3.94 crore pending.
• The general corporate purposes and issue expenses portions are shown as fully utilised, with no delays.

What it means for a retail reader

• The subsidiary is being set up with a small capital base of INR 1,00,000 and is meant to carry on real estate activity.
• The ₹350 crore guarantee is the largest item: it is a contingent liability of Max Estates for a loan taken by its wholly-owned subsidiary, so it matters if that subsidiary's loan obligations are not met.
• The QIP money is almost fully deployed (Rs. 796.06 crore of Rs. 800.00 crore), with a small unutilised balance of Rs. 3.94 crore and a flagged delay of 23 days on one deployment milestone.

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