Stock Crash: Hubtown shares down 20% in two sessions after preferential issue called off

Shares of Hubtown, the real estate developer, fell another 11% on Thursday, taking their two-day loss to over 20%. The fall comes after the company called off its proposed Preferential issue of shares. The stock had declined 11% on Wednesday as well.

In an exchange filing on Wednesday night, Hubtown mentioned that the proposed investors have expressed their unwillingness to participate in the proposed preferential issue, due to the current market conditions.

"In view thereof, we hereby inform you that the proposed preferential issue stands withdrawn," Hubtown's filing stated.

Hubtown had earlier proposed the issue of up to 1.46 crore fully paid-up shares of the company to private investors on a preferential basis on August 30. Shareholders of the company had approved the preferential issue of shares at its Extraordinary General Meeting on September 23.

The company has gone on to add that the cancellation of the preferential issue of shares will not have any material impact on the company's operations.

In a separate filing on Wednesday, Hubtown had highlighted that it has achieved pre-sales of ₹3,547 crore as on November 10, compared to ₹5,022 crore for the full financial year 2025.

The company is also in the process of merging marquee ultra-luxury projects into the listed entity, which will increase its total development value to ₹1.3 lakh crore from ₹85,000 crore earlier. The merger will also consolidate over 5 million square feet of ultra-luxury inventory in South Mumbai.

Shares of Hubtown are trading 11.1% lower on Thursday at ₹223.65. The stock is down 39% from its 52-week high of ₹365.