Vyomesh M. Shah HUF disclosed that an encumbrance on 1,711,170 equity shares of Hubtown Limited was invoked by Edelweiss Investment Advisors Limited on March 27, 2026. Following a part payment of the outstanding loan, the lender released 472,354 equity shares back to the promoter, increasing its shareholding. The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited on June 26, 2026, in compliance with Regulation 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The filing detailed the promoter holding and the status of encumbered shares for various promoter group entities. Vyomesh M. Shah HUF held 2,213,830 shares, representing 1.56% of the total share capital, prior to the release of the invoked shares. The specific event involved the release of 472,354 shares, which constituted 0.33% of the total share capital, reducing the encumbered holding to zero.

Promoter Holding and Encumbrance Status

The disclosure provided a comprehensive breakdown of the shareholding and encumbrance details for the promoter group. The table below outlines the holdings of key promoters and the status of their encumbered shares as of the reporting date.

The total promoter group holding stood at 46,659,244 shares, accounting for 32.84% of the total share capital. The total encumbered shares within the promoter group amounted to 7,500,000 shares, or 5.28% of the total share capital. The release of shares to Vyomesh M. Shah HUF did not alter the total encumbered shares held by the group, which remained at 7,500,000 shares.

Hubtown Limited shareholders and creditors have approved the merger of Saicharan Consultancy Private Limited and 25 West Realty Private Limited with the company, sanctioning two Schemes of Arrangement under Sections 230 to 232 of the Companies Act, 2013. The resolutions were passed during meetings convened pursuant to the directions of the National Company Law Tribunal (NCLT), Mumbai Bench. While the schemes have been approved by equity shareholders and unsecured creditors with the requisite majority, they remain subject to the sanction of the Hon'ble NCLT and other statutory approvals.

Strategic Rationale

The amalgamation of Saicharan Consultancy Private Limited is a strategic initiative to consolidate Hubtown's ownership in Rare Townships Private Limited, a subsidiary developing the "Rising City" project in Ghatkopar (East), Mumbai. Saicharan Consultancy Private Limited held a 21.17% equity stake in Rare Townships Private Limited at the time of the Board's approval, and the merger is expected to increase Hubtown's revenue share in the project by 21.17%. The merger of 25 West Realty Private Limited involves the integration of a super-luxury residential project located at Bandra (West), Mumbai, which is expected to generate total revenue of approximately ₹6,000 crores. These schemes are intended to strengthen the revenue base and profitability of the company through the consolidation of business operations and ownership interests in key real estate projects.

Merger Terms

The schemes specify the exchange ratios for the equity shareholders of the transferor companies. The allotment of shares is subject to the schemes becoming effective and the receipt of all requisite approvals.

Project Status

The "Rising City" project in Ghatkopar comprises 6 residential buildings. Five buildings have been completed and have received Occupation Certificates (OC), while the last building is expected to be completed by March 2027. The "25 West" project is positioned to generate strong demand and financial returns given its prime location and premium positioning in Bandra (West), Mumbai.