Shares of Hubtown Ltd climbed about 6 percent on Tuesday after the company said its equity shareholders and unsecured creditors had approved two schemes of arrangement involving the merger of Saicharan Consultancy Private Limited and 25 West Realty Private Limited with the company.
The approvals were granted in accordance with directions issued by the National Company Law Tribunal (NCLT), Mumbai Bench. Both transactions are awaiting final approval from the tribunal.
With a market capitalisation of around ₹2,920 crore, Hubtown shares rose to an intraday high of ₹212, compared with the previous close of ₹200.90, and were trading at ₹205.70.
Saicharan Consultancy merger linked to Ghatkopar project
The merger of Saicharan Consultancy Private Limited is aimed at consolidating Hubtown’s interest in Rare Townships Private Limited, which is developing the “Rising City” residential project in Ghatkopar (East), Mumbai.
According to the company, the transaction will increase Hubtown’s revenue share in the project by 21.17 percent. Most of the residential towers in the project have already been completed, with the final tower expected to be finished by March 2027.
Under the approved scheme, shareholders of Saicharan Consultancy will receive 648 equity shares of Hubtown for every one share held.
25 West Realty merger to bring luxury project under Hubtown
Hubtown also secured approval for the merger of 25 West Realty Private Limited, which is developing the luxury residential project “25 West” in Bandra (West), Mumbai.
The project is expected to generate approximately ₹6,000 crore in revenue. Shareholders of 25 West Realty will receive 42 equity shares of Hubtown for every one share held.
The company said the amalgamations are intended to strengthen its revenue base, improve operational efficiency and support long-term growth.
Financial performance
Hubtown reported a sharp improvement in its fourth-quarter performance for FY26.
Revenue rose 65 percent year-on-year to ₹160 crore, compared with ₹96.8 crore in Q4 FY25. EBITDA increased to ₹78.5 crore from ₹8.45 crore a year earlier.
Net profit surged to ₹26.2 crore, up from ₹1.89 crore in the corresponding quarter last year, while earnings per share increased to ₹1.61 from ₹0.26.
Company overview
Hubtown Ltd develops residential, commercial and mixed-use real estate projects through its own operations and through subsidiaries, joint ventures and associate companies. Its focus areas include redevelopment projects, premium housing and urban infrastructure, mainly within the Mumbai Metropolitan Region.
TL;DR:
Hubtown shares gained 6 percent after shareholders and creditors approved the proposed mergers of Saicharan Consultancy and 25 West Realty. The transactions, subject to NCLT approval, are expected to strengthen the company’s project portfolio and enhance future revenue visibility.
AI Summary:
- Hubtown shares rose 6% after merger approvals.
- Shareholders and creditors backed two schemes of arrangement.
- Saicharan merger will raise Hubtown’s revenue share in Rising City by 21.17%.
- 25 West project in Bandra is expected to generate about ₹6,000 crore.
- Both mergers are subject to final NCLT approval.
