Max Estates Limited has completed the allotment of 11,41,552 equity shares to its promoter entity through warrant conversion, raising ₹56.25 crores and strengthening the company's capital base. The transaction was approved by the Investment and Finance Committee on January 6, 2026.

Warrant Conversion Details

The allotment involved conversion of warrants by Max Ventures Investment Holdings Private Limited, the company's promoter entity. The conversion was executed at ₹657.00 per share, comprising a face value of ₹10.00 and a premium of ₹647.00.

This conversion represents the balance 75% payment for the warrants, following the initial 25% payment of ₹164.25 per warrant made during the original allotment in October 2024.

Impact on Share Capital and Shareholding

The warrant conversion has resulted in a significant increase in the company's paid-up share capital and altered the shareholding pattern. The company's total share capital increased by ₹1,14,15,520.00.

The promoter group's shareholding has increased from 44.89% to 45.28%, while public shareholding decreased proportionally from 55.11% to 54.72%.

Shareholding Pattern Changes

The allotment has strengthened the promoter group's stake in the company while maintaining compliance with regulatory requirements.

Regulatory Compliance and Listing

The newly allotted equity shares will rank pari passu with existing equity shares from the date of allotment and will be credited in dematerialized form to the allottee's demat account. The shares are subject to lock-in provisions under SEBI (ICDR) Regulations, 2018.

Max Estates will apply to BSE Limited and National Stock Exchange of India Limited for listing and trading approval of the allotted equity shares in accordance with applicable regulatory provisions. This conversion follows the company's earlier intimation dated October 10, 2025, regarding the allotment of 11,41,552 equity shares to Mr. Sunil Vachani through warrant conversion, indicating the systematic execution of the warrant conversion program initiated in October 2024.

Max Estates Limited has disclosed to stock exchanges that its subsidiary Max Square Limited has received a penalty order under Section 270A of the Income-tax Act, 1961. The penalty, amounting to ₹35.48 lakh, was imposed by the Assessing Officer for alleged under-reporting of income for Assessment Year 2021-22.

Background of the Tax Dispute

The penalty order follows a previous ruling by the National Faceless Appeal Centre (NFAC) under Section 250 of the Income-tax Act, 1961, which was communicated by the company on June 5, 2025. The NFAC had confirmed an addition of ₹63.78 lakh under the head "Income from Other Sources," resulting in a tax demand of ₹21.13 lakh for AY 2021-22.

Nature of Alleged Violation

The penalty has been imposed for alleged under-reporting of income in consequence of mis-reporting. Specifically, the tax authorities allege that Max Square Limited failed to offer ₹63.78 lakh of interest income earned on fixed deposits during project development as "Income from Other Sources" for FY 2020-21.

Current Legal Status

Max Square Limited has challenged the NFAC order by filing an appeal before the Income Tax Appellate Tribunal. According to the company's disclosure, the hearing has been concluded and the order is awaited. The subsidiary is also evaluating further legal options in the matter.

Financial Impact Assessment

Max Estates has stated that the financial impact of this penalty is not material at the consolidated level and does not affect the company's operations. The penalty order was received on December 31, 2025, and the company made the disclosure on January 1, 2026, in compliance with SEBI regulations.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following the guidelines specified in SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has provided detailed information about the penalty order as required under the regulatory framework.