Hubtown shares fall 9% after company calls off preferential issue on lack of investor interest

Hubtown share price

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26 Aug, 2025 12:21

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The shares of Hubtown dropped more than 9 percent on December 11 after the company announced that it is withdrawing its proposed preferential issue of shares.

The shares of the company closed at Rs 229 apiece on Thursday, extending losses for the fifth consecutive session. The stock has now fallen 25 percent in just five days.

Hubtown withdraws preferential issue:

Hubtown on December 10 announced that after it received in-principle approval from BSE and NSE for its proposed preferential issue of shares, the prospective investors expressed their unwillingness to participate in the issue. The company cited "current market conditions marked by uncertainties and volatility" and delay in approval by BSE and NSE as the reasons for lack of investor interest.

"In view thereof, we hereby inform you that the Proposed Preferential Issue stands withdrawn. As a result, the Company will not be proceeding further with the issue and allotment of equity shares of the Company as part of the Proposed Preferential Issue, as initially proposed," the company said.

Hubtown assured all stakeholders that the withdrawal of the preferential issue plan will not have any material impact on its business operations or financial stability. It added that it may explore alternative ways to raise capital as may be required for the business.

Hubtown's preferential issue plans:

Hubtown's board of directors had approved the proposal to issue nearly 1.47 crore equity shares of the company on a preferential basis to private investors on August 30. The application for in-principal approval was submitted to BSE and NSE on September 2.

The shareholders of the company approved the proposed preferential issue at its Extraordinary General Meeting (EGM) held on September 23 this year. Subsequently, BSE and NSE gave their respective in-principle approvals for the proposed preferential issue at a price of not less that Rs 341 per share to non-promoters on December 5.

Notably, the issue price was more than 14 percent higher than December 5 closing level of Rs 298.5 per share.

Hubtown share price history:

Hubtown shares have fallen around 24.5 percent in the past five days, and around 30 percent in the past one month. The stock has however gained more than 20 percent in the past six months, but is down around 14 percent in 2025 so far.

Its P/E ratio currently stands at over 27.