Hubtown Limited has made significant moves in both its equity allocation and financial backing for its subsidiary. The real estate developer has recently allocated shares to investment funds and provided a substantial corporate guarantee, showcasing its strategic financial maneuvers.

Share Allocation to Abakkus Funds

Hubtown has allocated a total of 7.34 lakh shares, equally distributed between two investment funds:

• Abakkus Diversified Alpha Fund: 3.67 lakh shares
• Abakkus Diversified Alpha Fund-2: 3.67 lakh shares

This allocation demonstrates investor interest in Hubtown and could potentially strengthen the company's capital structure.

Corporate Guarantee for Subsidiary

In a separate development, Hubtown has taken steps to support its wholly-owned subsidiary, Twenty Five Estates Realty Private Limited, through corporate guarantees:

• A corporate guarantee of up to Rs. 96.00 crores has already been provided to MITCON CREDENTIA TRUSTEESHIP SERVICES LIMITED.
• An additional corporate guarantee of up to Rs. 26.00 crores is in process.

These guarantees are to secure the issuance of Non-Convertible Debentures (NCDs) by Twenty Five Estates Realty Private Limited.

Key Details of the Corporate Guarantee

The company has stated that these transactions involve the promoter/promoter group, as Twenty Five Estates Realty Private Limited is a wholly-owned subsidiary of Hubtown Limited.

This dual action of share allocation and providing financial backing to its subsidiary indicates Hubtown's active approach to capital management and support for its group companies. Investors and market watchers may want to keep an eye on how these moves impact Hubtown's financial position and growth strategies.

Hubtown Limited , a prominent real estate developer, has received fresh board approval for its composite scheme of arrangement involving multi-step amalgamations. The board meeting held on December 30, 2025, reconsidered and approved the merger scheme after stock exchanges returned the initial application.

Exchange Application Return

The stock exchanges (BSE and NSE) returned Hubtown's initial application filed under Regulation 37 of SEBI LODR Regulations on December 24, 2025. The exchanges advised the company to submit a fresh application with updated valuation reports based on the latest audited financials, in accordance with their Standard Operating Procedure.

Fresh Board Approval

Following recommendations from the Committee of Independent Directors and Audit Committee, the board has accorded fresh approval to the scheme under Sections 230-232 and Section 66 of the Companies Act, 2013. The scheme involves:

Financial Overview

The latest financial details of the entities involved in the merger show significant scale differences:

Share Exchange Ratios

The scheme proposes specific share exchange ratios based on valuation by CA Shashank Maloo (Registered Valuer) and fairness opinion from 3Dimension Capital Services:

Shareholding Impact

The merger will significantly alter Hubtown's shareholding structure, with promoter shareholding expected to increase substantially:

Regulatory Approvals Required

The scheme remains subject to various statutory and regulatory approvals including stock exchanges, shareholders and creditors approval, NCLT approval, and other contractual and regulatory permissions as required under applicable laws. The company will now file a fresh application with updated valuation reports to comply with exchange requirements.

The board meeting commenced at 6:00 PM IST and concluded at 7:30 PM IST on December 30, 2025, with Company Secretary Shivil Kapoor signing the disclosure documents.