Shares of Max Ventures and Industries rose more than 3 percent on Monday after the company announced that the Chandigarh bench of the National Company Law Tribunal (NCLT) has approved its merger with the Max group’s realty arm Max Estates.

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Max Estates is a wholly-owned subsidiary of Max Ventures and Industries. Following the merger, Max Estates will be listed on the stock exchanges, the Max group had announced earlier in April.

The NCLT approved the merger scheme between the companies in an order passed on July 3. Max Estates, established in 2016 develops residential and commercial use properties.

The board of Max Ventures and Industries in April approved the merger with its subsidiary Max Estates as a part of the group's restructuring exercise and to focus completely on real estate businesses.

Max Ventures and Industries was also into manufacturing of specialty packaging films in a joint venture with Japanese firm Toppan Printing. The Max group company divested its entire 51 percent stake to a Japanese JV partner for Rs 600-650 crore to fully focus on the real estate segment.

The company in April had told CNBC-TV18 that it expected the merger between Max Ventures and its subsidiary to complete by the end of the first quarter of financial year 2024.

The company said it expected direct listing of Max Estates post June-July.

Max Ventures on Sunday announced that Max Estates has achieved pre-formal launch sales of over Rs 1,800 crore for its first luxury residential

project located in Noida, Uttar Pradesh. The project is built across 10 acres, with 3 high rise towers having 201 units.

Shares of Max Ventures are trading 2.4 percent higher at Rs 213.65. Stock is up 45 percent on a year-to-date basis.