Max Estates share price rises 4% on plans to raise Rs 150 cr; know more

Shares of Max Estates rallied 4.28 per cent at Rs 694.45 a piece on the BSE in Thursday’s intraday deals. The real estate firm's share price moved up after the company on Wednesday announced its plans to raise Rs 150 crore by way of issuing equity shares, warrants, preference shares, or other convertible securities.

The company’s shares have soared 150 per cent in the last six months, while zooming 86 per cent in the last three months. At 12:58 PM the share price of the company was trading 1.47 per cent higher at Rs 762. By comparison, the BSE Sensex was trading 0.23 per cent higher at 81,977 levels. 

“The Board of Directors of the company will meet on Saturday, August 31, 2024, to discuss and approve a proposal to raise up to Rs 150 crore by issuing equity shares, warrants, preference shares, or other convertible securities. The funds will be raised from promoters, members of the promoter group, or potential investors through permissible methods, including preferential issues,” the company said in an exchange filing on Wednesday.

Established in 2016, Max Estates is the real estate development arm of Max Group. It provides properties for both residential and commercial use. For the April-June quarter of financial year 2024-25 (Q1FY25) the net sales surged to Rs 40.49 crore, marking a 121.52 per cent increase from Rs 18.28 crore in June 2023. 

However, quarterly net profit decreased by 46.31 per cent to Rs 1.57 crore, compared to Rs 2.93 crore in June 2023. Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortisation) stood at Rs 22.45 crore, up 169.83 per cent from Rs 8.32 crore in the same month last year.

The company has a total market capitalisation of Rs 10,041.50 crore. Its shares are trading at a price to earnings multiple of 508.07 times with an earning per share of Rs 1.31 per share.