Max Estates, the real estate arm of the Max Group, is likely to enter Delhi’s residential real estate market with a proposed acquisition of an 84.71 acre land parcel in West Delhi. Over the next couple years, the estimated gross development value (GDV) of the development opportunity is expected to be the ₹10,000 crore to ₹12,000 crore.
The acquisition will be executed through a non-cash share swap valued up to ₹420.2 crore, with no cash outflow from Max Estates. The company plans to acquire nine promoter-owned companies that hold the land parcels and issue equity shares to their shareholders as consideration.
Under the proposed transaction, Max Estates will issue up to 70 lakh equity shares at ₹597.50 per share. The deal is subject to shareholder approval and in-principle approvals from the BSE and the National Stock Exchange (NSE). The structure will allow the landowners to receive shares in Max Estates in exchange for their ownership of the companies holding the land, rather than receiving cash for the transaction.
The proposed residential development is situated in West Delhi, with connectivity to the airport via Urban Extension Road-II (UER-II) expressway, which connects Alipur to Mahipalpur through Mundka, Bakkarwala, Najafgarh and Dwarka. According to Max Estates, the location also has access to the Delhi Metro Grey Line and is within reach of the Dwarka Expressway, Gurugram border and Indira Gandhi International Airport (IGI Airport).
The company states that the amount obtained for the acquisition is about ₹4.95 crore per acre, highlighting that this is considerably less than the current prices for licensed land. Max Estates estimates that the land cost will account for less than 5% of the expected GDV. The company compared this with the 20-25% typically spent on land in cash-based purchases. The 84.71-acre parcel is expected to be developed in phases, giving Max Estates a multi-year residential development pipeline in Delhi.
Sahil Vachani, Vice Chairman and Managing Director, Max Estates, said the transaction would give the company its first foothold in Delhi, which he described as the one core NCR market where Max Estates did not yet have a presence.
“This is a landmark transaction for Max Estates. It gives us our first foothold in Delhi, the one core NCR market we did not yet have a presence in, at a fraction of prevailing land values elsewhere in the region, and without deploying a rupee of cash,” Vachani said.
He added that the land parcel is positioned within Delhi’s westward urban expansion under Master Plan 2047, with land-pooling momentum and improving connectivity through UER-II, Dwarka and IGI Airport. According to Vachani, the scale of the parcel will provide Max Estates with a multi-year, phase-able development pipeline, while strengthening the company’s land-bank visibility.
The proposed transaction is now subject to the required shareholder and stock exchange approvals, following which the company plans to take forward the phased development of the West Delhi land parcel.
