Hubtown drops ahead of share-sale by promoters

Hubtown lost 2.07% to Rs 177.30 at 15:19 IST on BSE after the promoters have offered to sell an aggregate of 54.48 lakh equity shares, representing 7.49% of the paid-up equity share capital of the company.

The announcement was made after market hours on Monday, 2 June 2014.

Meanwhile, the S&P BSE Sensex was up 180.24 points or 0.73% at 24,865.09.

On BSE, so far 4,255 shares were traded in the counter as against average daily volume of 8,523 shares in the past one quarter.

The stock hit a high of Rs 180.60 and a low of Rs 176.15 so far during the day. The stock had hit a 52-week high of Rs 207 on 26 May 2014. The stock had hit a record low of Rs 100 on 26 March 2014.

The stock had outperformed the market over the past one month till 2 June 2014, advancing 29.32% compared with Sensex's 10.18% rise. The scrip had also outperformed the market in past one quarter, jumping 66.02% as against Sensex's 16.88% rise.

The real estate developer has equity capital of Rs 72.74 crore. Face value per share is Rs 10.

Hubtown's promoters after market hours on Monday, 2 June 2014 announced that they would sell an aggregate of 54.48 lakh equity shares, representing 7.49% of the paid-up equity share capital of the company, as of 2 June 2014. The floor price for the offer for sale will be fixed after trading hours today, 3 June 2014. The sale shall take place on the separate trading window of BSE and shall commence on 4 June 2014 at 9.15 IST and shall close on the same day at 15.30 IST.

The share sale is intended to prune the promoters' stake in the company to 75% as per Sebi's minimum public shareholding norms which stipulates minimum public shareholding of 25%. The promoters are currently holding 82.49% stake in Hubtown.

Hubtown reported a consolidated net loss of Rs 10.54 crore in Q4 March 2014, lower than net loss of Rs 87.76 crore in Q4 March 2013. Net sales declined 10% to Rs 94.68 crore in Q4 March 2014 over Q4 March 2013.

Hubtown, formerly Ackruti City, is one of the leading real estate companies of India with diversified interests across several verticals --residential, commercial, IT Parks, SEZs, SRA, biotech parks, retail, hotels etc.

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