MaxVIL completes closing of 1st tranche of the divestment of balance 51% stake in its packaging business

Max Ventures & Industries Limited (MaxVIL), one of the three holding companies of the $4-Bn Max Group, on 15th November 2021 had initiated the transaction to sell its 51% remaining stake in Max Speciality Films Limited ('MSFL') to partner Toppan Inc. The company announces the closure of the transaction and estimates the deal value to be concluded for ~Rs. 628 crores. Accordingly, MSFL ceases to be a subsidiary of the company effective 1st February 2022.

Company is receiving first tranche payment of ~Rs. 485 crores, additional ~INR 10 crores expected within 30 days and second tranche of payment of about Rs. 133 crores expected to be received before June 2023.

With exit from the packaging business, MaxVIL has now emerged as a pure play real estate business entity with focus on premium residential and commercial real estate in NCR. The proceeds from the sale of packaging business will be utilized towards the development of the real estate business and achieve the growth ambitions of MaxVIL to become one of the top multi asset real estate developer in the NCR region.

The restructuring process of MaxVIL and Max Estates to change name of listed company to Max Estates Limited has been initiated to reflect the true nature of the business and simplify the present holding company structure and the same will be presented to the Board of Directors of the Company for consideration and approval in due course.

Commenting on the completion of the transaction, Mr. Sahil Vachani, MD & CEO of MaxVIL said, "With the closure of this transaction, the company has embarked on a new journey to emerge as the leading Real Estate developer in the NCR region. The fund allows the company the headroom to scale its growth aspirations across both the Residential and Commercial spaces. The real estate sector has witnessed strong recovery and we have a strong residential and commercial real estate development pipeline under different stages of evaluation including due diligence.

The proceeds from the packaging business combined with internal accruals and potential financial partnerships with institutional investors will be judiciously deployed in these development opportunities. This will help us deliver on our stated aspiration of adding 1 Mn square feet of premium residential as well as commercial real estate space every year."

Shares of Max Ventures and Industries Limited was last trading in BSE at Rs. 115.05 as compared to the previous close of Rs. 115.75. The total number of shares traded during the day was 12488 in over 364 trades.

The stock hit an intraday high of Rs. 117.55 and intraday low of 114.50. The net turnover during the day was Rs. 1450174.00.

Source : Equity Bulls

Keywords

MaxVenturesandIndustries INE154U01015 MAXVIL StakeSale MaxSpecialityFilms ToppanInc