New York Life Insurance invests Rs 388 crore in Max Estates

2 May 2024 , 02:19 PM

MAX Estates has received a strategic investment of ₹388 Crore from New York Life Insurance Corporation. This capital infusion will be used for reducing net debt and for providing working capital.

The share price of Max Estates surged by 4% during the opening trade on May 2 following the announcement of a binding Memorandum of Understanding (MoU) with New York Life Insurance Company (NYL).

At the time of writing, shares of MAX Estates were trading at ₹334.70 which is a 13.80% increase than the previous close. The stock has gained over 18.25% in the last year, and 5.83% gain since the beginning of the year.

According to the MoU, NYL will subscribe to equity shares of Max Towers Private Limited (MTPL) and Pharmax Corporation Limited (PCL) for approximately ₹565.25 million and ₹347.56 million, respectively.

Additionally, NYL will acquire existing equity shares of MTPL and PCL from the company for approximately ₹1,381.88 million and ₹1,589.46 million, respectively.

Post-transaction, NYL will hold a 49% stake in both SPVs, while the remaining shares will be retained by the company. The completion of these transactions is subject to regulatory approvals and the execution of definitive agreements.

The board also approved a corporate guarantee of ₹4500 million for Max Estates 128 Private Limited, a wholly-owned subsidiary, to secure financial facilities from Standard Chartered Bank and Standard Chartered Capital.

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