India News | MaxVIL Q2 Profit at Rs 12cr; to Sell 51% Stake in Packaging Film Biz at Rs 1,350 Cr Enterprise Value

New Delhi, Nov 14 (PTI) Max Ventures and Industries Ltd on Sunday reported a consolidated net profit of Rs 12.06 crore for the quarter ended September and will sell its entire 51 per cent stake in speciality packaging film business for an enterprise value of Rs 1,350 crore.

The company, which is part of Max group, will sell the 51 per cent stake to its existing joint venture partner Japan-based Toppan Inc, a move aimed at existing speciality packaging film business and focusing on real estate business.

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Max Ventures and Industries Ltd (MaxVIL) has a presence in real estate and packaging film businesses. It runs a realty business through its 100 per cent subsidiary Max Estates. Max Speciality Films is a 51:49 strategic partnership with Toppan.

MaxVIL posted a consolidated net profit of Rs 12.06 crore during the July-September quarter of this fiscal year as against a net loss of Rs 11.48 crore in the year-ago period.

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Total income increased to Rs 380.99 crore in the second quarter of the current fiscal from Rs 293.68 crore in the year-ago period, according to a regulatory filing.

The Board approved the divestment of the remaining 51 per cent shareholding in Max Speciality Films Ltd to Toppan Inc in two separate tranches at an enterprise value of Rs 1,350 crores, the filing said.

The deal size will be around Rs 675 crore for a 51 per cent stake sale. The deal is subject to customary closing conditions, including but not limited to shareholder or other approvals.

Further, the Board authorized its Investment and Finance Committee to explore various modalities for restructuring with its wholly-owned subsidiary Max Estates Ltd and be renamed as Max Estates Ltd after receiving required statutory approvals.

"The change of name will bring better synergies between the name and the operations of the company," the filing said.

In 2017, Toppan had acquired a 49 per cent stake for about Rs 200 crore and became a strategic partner of MaxVIL.

Max Speciality Films is one of the leading manufacturers of Biaxially Oriented Polypropylene (BOPP) films, including specialty packaging, labels, coating and thermal lamination films, with a total capacity of 72-kilo tonnes per annum.

In real estate business, MaxVIL's first office building 'Max Towers' in Noida, comprising around 6 lakh square feet, has been almost fully leased.

The second office building 'Max House', having a 1 lakh square feet leasable area, at Okhla in the national capital will soon get fully leased.

The construction works for the second phase at Okhla project comprising about 1 lakh square feet area as well as the new office complex 'Max Square', comprising seven lakh square feet of leasable area on Noida Expressway are progressing well.

The Max Square building at Noida is being developed through a joint venture with New York Life Insurance Company, which has a 49 per cent stake in the project.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)