MaxVIL successfully completes closing of 1st tranche of the divestment of 51% stake in its packaging business for Rs. 628 crores

New Delhi, February 11, 2022: Max Ventures & Industries Limited (MaxVIL), one of the three holding companies of the $4-Bn Max Group, on November 15, 2021 had initiated the transaction to sell its 51% remaining stake in Max Speciality Films Limited (‘MSFL’) to partner Toppan Inc. The company announced 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 February 1, 2022.

Company is receiving first tranche payment of Rs. 485 crores, additional Rs 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. A press release issued by the company says that the proceeds from the sale of packaging business will be utilized towards the development of the real estate business.

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, 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 head room to scale its growth aspirations across both the Residential and Commercial spaces. The real estate sector has witnessed stronger recovery and we have a strong residential and commercial real estate development pipeline under different stages of evaluation including due diligence.”