Marathon Nextgen board clears ₹335 crore buy of Adani's stake in Monte South

Marathon Nextgen Realty Ltd's board on 31 October 2026 approved the purchase of Adani Group's 60% stake in Monte South, a project in Byculla, Mumbai, for approximately ₹335 crore. The company disclosed the decision in a stock exchange filing on Saturday. After completion, Marathon's interest in the project would rise from 40% to 100%.

The stake sits in Swayam Realtors and Traders LLP (SRTL), the joint venture vehicle through which the two companies hold the project. Marathon said the acquisition should be completed within two months of requisite approvals. The filing does not give a calendar date for completion.

Price, funding and approvals

The filing puts the consideration at approximately ₹335 crore. Some accounts of the deal describe the amount as ₹135 crore in cash and ₹200 crore in bank guarantees. The filing does not set out the financing method, the payment schedule or the conditions for the purchase, so the split should be read as reported rather than confirmed.

The filing does not say whether shareholder approval is a condition for the acquisition. Accounts also differ on whether the purchase is a related-party transaction. One account says the company is seeking shareholder permission for related-party transactions covering funding and loan guarantees. Another says the SRTL stake purchase is not a related-party transaction. Neither point is settled in the material available.

Why Adani is exiting and what Marathon sees in the asset

Marathon quoted the reason for the exit: "As the Group increasingly focuses its resources and attention on these larger opportunities, it has decided to exit its investment in Monte South." Adani's release describes Monte South as the group's first premium real estate development in Mumbai.

Marathon said the project "offers significant residential sales and development potential, alongside the future monetisation of its commercial component." One account says the acquisition is aimed at speeding up development and sales of the remaining inventory. The commercial component, Monte South Commercial, was announced in October 2025 as a joint venture with Adani Realty.

The company's filing records that it acquired 12.20 acres of Khatau Mills land in Byculla in 2007. Project listings give a plot of 12.5 acres and describe a mixed-use campus of four 64-storey residential towers and a commercial tower of about 25 lakh sq ft. Marathon's filing says that as of March 2025 the project ranked third in the market by total marketable supply, with 936 residential units.

Marathon's wider position

Marathon Nextgen is listed on the NSE under the symbol MARATHON and says it has been active in the Mumbai Metropolitan Region for over four decades. Its ongoing projects include Lower Parel, Byculla and Mulund. Its Q2 FY27 update reported a 70% rise in residential pre-sales quarter on quarter across price segments. Recent additions include a redevelopment in Versova, where the estimated gross development value is over ₹450 crore, and a joint development agreement in Sewri, with an estimated gross development value of around ₹450 crore.

Byculla is served by its station on the central line, with Reay Road station nearby on the harbour line. The project lies next to the Eastern Express Highway and is close to Atal Setu. The Aqua Line extension to Cuffe Parade is planned, and Byculla is listed as an approved station on Line 11, but no opening dates have been set for either.

What it means for buyers and investors

The filing does not describe any change to existing flats, bookings, possession or pricing. Project listings give conflicting possession dates and MahaRERA registration numbers, so buyers should check the registration directly on the MahaRERA portal before relying on either.

For the company, the cash outflow will show up in its next quarterly results. Commentary on the deal has pointed to high competition in South Mumbai's luxury segment and long execution timelines. Citywide, Knight Frank's analysis of state registration data shows Mumbai property registrations in October 2026 rose 9% to 12,690 units. No Byculla-specific figures were published with the deal.

Investors will watch the following in the coming months:

• Completion of the acquisition within two months of approvals, and the calendar date once it is set.
• Whether shareholder approval is required and how the related-party status is settled in the company's disclosures.
• The financing split between cash and bank guarantees, and the effect on net debt in the next quarterly results.
• Progress on completion of the residential towers and the monetisation of the commercial component.