Hubtown Ltd has announced a preferential issue of equity shares priced at Rs 341 per share. The issue, aggregating to Rs 500.59 crore, will be used for debt repayment, working capital, and general corporate purposes, strengthening the company’s financial position and supporting future growth initiatives.
Hubtown Ltd has confirmed the launch of its preferential issue of equity shares, setting the price at Rs 341 per share. The company plans to raise Rs 500.59 crore through the allotment of 1.47 crore fully paid-up equity shares to non-promoter investors. The move is aimed at reducing debt and enhancing liquidity, marking a significant step in Hubtown’s financial restructuring strategy.
Key highlights from the announcement include
-
Issue price fixed at Rs 341 per share.
-
Total fundraising size set at Rs 500.59 crore.
-
1.47 crore equity shares to be allotted via preferential issue.
-
Rs 150 crore earmarked for repayment of secured loans.
-
Rs 310.59 crore allocated for working capital requirements.
-
Rs 25 crore directed toward general corporate purposes.
-
Rs 15 crore set aside for issue-related expenses.
-
Brickwork Ratings India Pvt Ltd will monitor the utilization of proceeds.
This preferential issue underscores Hubtown’s commitment to strengthening its balance sheet and ensuring sustainable growth. By focusing on debt reduction and working capital enhancement, the company aims to improve operational efficiency and investor confidence.
Sources: Business Upturn, ScanX News, Realty Plus