Hubtown Limited has informed the Exchange about statement of deviation(s) or variation(s) under Reg. 32
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Awaiting price reaction for this filing.
Hubtown Limited has filed its quarterly statement under SEBI Regulation 32 confirming nil deviation in the use of funds raised through three preferential issues in September 2024 — Equity Shares (Rs 1,209 crore), CCDs (Rs 5 crore), and Warrants (Rs 171.88 crore received out of Rs 275 crore total). Total proceeds available stand at Rs 1,105.86 crore. The Board modified the cost of objects on February 14, 2025, shifting Rs 3 crore from working capital to general corporate purposes. The Monitoring Agency (Brickwork Ratings) flagged a 21.6% over-utilization in working capital under the equity issue (Rs 108.18 crore used against a revised allocation of Rs 89 crore), which is beyond the standard 10% threshold but was pre-approved by shareholders via a special resolution dated August 24, 2024. Loan repayment of Rs 805.75 crore is nearly complete, while Rs 3 crore earmarked for issue expenses remains unutilized. Unutilized funds of about Rs 2.47 crore are parked in ICICI, Axis, and Kotak bank accounts.
This is largely a routine compliance filing confirming funds are being deployed as planned. The flagged over-utilization in working capital is already shareholder-approved, so no corrective action is needed. The 21.6% deviation is technically beyond the standard 10% band and may draw investor attention, but with the auditor, audit committee, and monitoring agency raising no objections, near-term impact on the stock should be limited.