Hubtown Limited , a prominent real estate developer, has withdrawn its proposed ₹500.59 crore preferential share issue after receiving in-principle approval from both BSE and NSE. The company cited investor unwillingness to participate due to current market conditions marked by uncertainties and volatility.

Timeline of Key Events

The preferential issue had progressed through several regulatory milestones before its withdrawal:

Proposed Issue Structure

The withdrawn preferential issue was structured to raise ₹500.59 crore through the allotment of 1.47 crore equity shares at ₹341 per share to 101 private investors. The funds were intended for multiple corporate purposes:

Reasons for Withdrawal

According to the company's communication to stock exchanges, the proposed investors expressed unwillingness to participate in the preferential issue. Key factors contributing to this decision included:

• Current market conditions characterized by uncertainties and volatility
• Substantial time passage since the initial board consideration
• Regulatory requirement to complete allotment within 15 days of receiving in-principle approval

Impact Assessment

Hubtown Limited has assured stakeholders that the withdrawal will not have any material impact on the company's business operations or financial stability. The company indicated it may explore alternative avenues for capital raising as required for business needs.

Future Capital Raising Plans

While the current preferential issue has been withdrawn, the company has committed to keeping stakeholders informed about any future capital raising developments. The withdrawal comes at a time when market conditions have made equity fundraising challenging for many companies in the real estate sector.

Hubtown Limited , a prominent player in the real estate sector, has made a strategic move to strengthen its position in the bus terminal infrastructure business. The company has signed Share Purchase Agreements to acquire additional stakes in four of its subsidiary companies, marking a significant development in its corporate structure and resolving long-standing legal disputes.

Key Highlights of the Acquisition

• Total Investment: Hubtown Limited will invest Rs. 16.00 crores to increase its stakes in four subsidiary companies.
• Subsidiaries Involved: The acquisition targets Hubtown Bus Terminal companies in Adajan, Ahmedabad, Mehsana, and Vadodara.
• Increased Control: The transaction will boost Hubtown's voting control from 45% to 55% in three of the companies, making them subsidiaries.
• Legal Resolution: The deal settles five ongoing litigations with GVFL Trustee Company Private Limited, pending since 2015.

Breakdown of the Acquisition

Financial Performance of Acquired Entities

The four bus terminal companies have shown varying financial performances in the recent fiscal year:

• Combined Turnover: Rs. 4,830.38 lakhs
• Individual Performances:
  • Adajan: Rs. 526.38 lakhs
  • Ahmedabad: Rs. 687.88 lakhs
  • Mehsana: Rs. 3,284.05 lakhs
  • Vadodara: Rs. 332.07 lakhs

Strategic Implications

This acquisition aligns with Hubtown Limited's core business of real estate construction and development of residential and commercial premises. By increasing its stakes in these bus terminal companies, Hubtown is poised to strengthen its foothold in the infrastructure development sector, particularly in Gujarat.

Transaction Details

• Payment Method: The acquisition will be completed through installments via cheque.
• Completion Timeline: The final payment is scheduled for February 2, 2026.
• Regulatory Approval: No governmental or regulatory approvals are required for this acquisition.

Impact on Corporate Structure

Post-acquisition, three of the four companies will become subsidiaries of Hubtown Limited, as the voting control increases to 55%. This change in corporate structure is expected to give Hubtown more operational control and strategic flexibility in managing these assets.

Conclusion

This strategic move by Hubtown Limited not only expands its portfolio in the bus terminal infrastructure segment but also resolves long-standing legal issues, potentially paving the way for smoother operations and growth in the future. The acquisition reflects the company's commitment to strengthening its presence in key infrastructure projects across Gujarat.