Hubtown shares tank 12% in trade; here's what's worrying investors

Hubtown shares tumbled 11.5 per cent on the BSE, logging an intra-day low at ₹223 per share. The stock was under pressure after the company withdrew its proposed preferential issue of up to 1,46,80,249 equity shares to private investors.

 

At 9:46 AM, Hubtown’s share price was trading 10.51 per cent lower at ₹225.55 per share on BSE. In comparison, the BSE Sensex was down 0.22 per cent at 84,206.7.

 

The company has a total market capitalisation of ₹3,205.08 crore. Its 52-week high was at ₹366, and its 52-week low was at ₹149.9.  

 

According to the filing, Hubtown decided to withdraw its proposed preferential issue of up to 1,46,80,249 equity shares to private investors. 

 

The company had already obtained board and shareholder approvals, as well as in-principle approvals from BSE and the National Stock Exchange (NSE) on December 5, 2025, and was required to complete the allotment within 15 days.   ALSO READ | Tejas Networks share up 3% on securing this deal; check all details inside 

However, the proposed investors have now expressed unwillingness to participate, citing volatile market conditions and the time elapsed since the issue was first cleared. 

 

As a result, Hubtown will not proceed with the share issue. The company said this withdrawal will not materially impact its business or financial stability and that it may explore other capital-raising options in the future.

 

In a separate filing, the company announced strong operational performance, led by strong pre-sales momentum. The company achieved pre-sales of ₹3,547 crore as on November 10, 2025 year-to-date (Y-T-D), against full year pre-sales of ₹5,022 crore in FY25, indicating a growth of 19 per cent year-on-year (Y-o-Y) (considering the expected pre-sales of amalgamating companies).   ALSO READ | Ashoka Buildcon rises 4% as JV secures LoA for Mithi River cleanup project 

Further, the company is in the process of merging marquee ultra-luxury projects 25 West (Bandra), 25 South (Prabhadevi), and 25 Downtown (Mahalaxmi) into the listed entity. This strategic consolidation will increase Hubtown’s Total development value from ₹85,000 crore to ₹13,000 crore. Post-merger, Hubtown will consolidate over 5 million sq. ft. of prime ultra-luxury inventory, reinforcing the company’s presence in South Mumbai’s most prime micro-markets.

 

Formerly known as Ackruti City Limited, Hubtown is Indian real estate company, which covers projects including residential, commercial, IT, industrial and infrastructure. Its business is spread across Mumbai, Thane, Pune, Bangalore, and four cities in Gujarat.