Max Estates Issues ₹100 Crore Corporate Guarantee, Raises Total Exposure To ₹350 Crore

New Delhi: Max Estates has stepped up support for its subsidiary with a fresh guarantee, reinforcing confidence in an ongoing commercial real estate project.

Expands Guarantee Commitment

Max Estates Limited has issued an additional corporate guarantee of Rs 100 crore on April 27, 2026. This builds on an earlier Rs 250 crore guarantee, taking the total obligation to Rs 350 crore. The move reflects continued financial backing for its subsidiary’s borrowing requirements and signals a commitment to project completion timelines.

Supports Project Financing

The guarantee is tied to loans taken by Max Square Limited from ICICI Bank Limited and Yes Bank Limited, with sanctioned limits of Rs 292 crore each. These funds are being used to cover the balance of construction and development costs of a commercial project in Sector 129, Noida. The additional guarantee was required under lender conditions to secure the financing.

Structured As Arm Length

Since Max Square Limited is a subsidiary, the transaction qualifies as a related party arrangement. The company stated it has been executed on an arm’s length basis. The guarantee acts as security for lenders and will remain valid until the subsidiary fully repays its obligations, ensuring compliance with agreed financing terms.

Limited Financial Impact

Max Estates noted that the guarantee is a contingent liability and does not impact its consolidated debt position. This means the financial exposure will only materialize if the subsidiary fails to meet its repayment obligations, helping the company manage risk while supporting growth. The additional guarantee highlights Max Estates’ strategic focus on advancing its commercial real estate portfolio while maintaining financial discipline through structured and transparent commitments.

Disclaimer: This article is based solely on the contents of the company’s stock exchange filing and does not include external analysis or independent verification.