Realty stock crashes 13% after it withdraws preferential issue of 1.47 Cr shares

Synopsis: The shares of this real estate company tumbled more than 13% after its board decided to withdraw its preferential issue plan of 1.47 crore shares, which was approved on 30 August this year, due to the unwillingness of the proposed investors to participate in the issue.

This company, which executes and develops commercial and residential real estate projects on its own and through subsidiaries/joint ventures/associate companies and is present in cities viz. Mumbai, Thane, Pune, Ahmedabad, Surat, Vadodara and Mehsana, had its shares in the news today following the company’s announcement to withdraw its preferential issue. 

With a market cap of Rs 3,359 crore, the shares of Hubtown Ltd reached a low of Rs 218.35 compared to its previous day’s closing price of Rs 252.05, giving a fall of more than 13% in today’s trading session. The shares have given a return of 1,500% over the last 5 years and are trading at a PE of 26.2, whereas their industry PE is 33.4 

About the Issue Withdrawal.

Hubtown Limited has withdrawn its proposed preferential issue of 1,46,80,249 equity shares, even though the plan had already cleared all major approvals. The Board had given its go-ahead on August 30, 2025, followed by shareholder approval on September 23, 2025, and finally the in-principle approval from both BSE and NSE on December 5, 2025, completing the regulatory steps needed for the issue.

As per SEBI ICDR rules, the company was required to complete the allotment within 15 days of receiving exchange approval. However, during this period, the proposed investors chose not to participate, citing uncertain and volatile market conditions and the considerable delay between when the issue was first considered and when approvals were finally received. Because of this shift in investor interest, Hubtown decided to withdraw the issue and confirmed that no allotment will take place under the earlier proposal.

Despite stepping back from the preferential issue, Hubtown has assured stakeholders that this withdrawal will not have any material impact on its financial stability or day-to-day operations. The company also noted that it may explore other fundraising options going forward and will keep stakeholders informed about any future developments.

Financials and more. 

The revenue from operations for the company stands at Rs 209 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 99 crores, growing by about 111 per cent YoY. Similarly, the net profit stood at Rs 32 crore in Q2 FY26, up from Rs 19 crore in Q2 FY25, giving a growth of about 68 per cent. 

Hubtown Limited is a seasoned real estate developer with 35+ years of legacy, having started its journey in 1989 and later getting listed on the NSE and BSE in 2007. Over the decades, it has established a solid track record by delivering 47 projects, covering 12.6 million sq. ft. of completed development, along with 1.4 million sq. ft. currently under execution and 9 million sq. ft. of rehabilitation area—showcasing its strong presence in Mumbai’s redevelopment landscape. 

The company operates across residential, commercial and infrastructure segments, with a major footprint in Mumbai, Thane and the MMR region, and smaller but growing exposure in Gujarat and Pune. A key strength of Hubtown is its 360° delivery capability, where it manages everything in-house—from land procurement and approvals to project execution and sales—allowing tighter control and smoother execution. Adding to this, the company holds a sizeable launch-ready land bank of 23.1 million sq. ft., along with prime land parcels in the MMR region, which positions it well for future growth in one of India’s most high-value real estate markets.

Overall, Hubtown blends experience, strong execution ability and strategic land holdings, giving it a meaningful and sustainable presence in the urban development and redevelopment ecosystem.

Written by Leon Mendonca. 

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