Hubtown Limited has informed the Exchange about Amalgamation/Merger
HUBTOWN · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.9 pts more than Nifty Microcap 250 and 1.6 pts more than its Residential Commercial Projects peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Hubtown Limited's board, at its meeting on December 30, 2025, has given fresh approval to a composite scheme of arrangement after stock exchanges returned an earlier application citing the need for an updated valuation report. The scheme involves two steps: first, merging Distinctive Realty Private Limited into Amazia Developers Private Limited (ADPL), and then merging ADPL and Nitant Real Estate Private Limited (NREPL) into Hubtown, effective from October 1, 2025. Hubtown will issue equity shares at exchange ratios of 6,221:1 for ADPL shareholders and 16:1 for NREPL shareholders, at an indicative value of about Rs 980 per share. The merger consolidates promoter group companies that collectively hold a 98.86% stake in Twenty Five South Realty (developing the '25 South' luxury project at Prabhadevi) and a 75% stake in Twenty Five Downtown Realty (developing '25 Downtown' near Mahalaxmi). Post-scheme, promoter shareholding in Hubtown will rise sharply from 35.02% to 63.43% (or to 69.32% if two other pending schemes are also factored in), leading to significant dilution for public shareholders.
Existing public shareholders face substantial dilution as promoter shareholding jumps to over 63% post-merger. However, the merger brings in premium Mumbai real estate assets directly into Hubtown, which could boost the company's project pipeline and long-term value. The deal is subject to stock exchange, NCLT, shareholder and creditor approvals before it can take effect.