Hubtown Limited has announced that its Board of Directors has approved a comprehensive amalgamation scheme involving its group companies in a move aimed at strengthening its presence in the real estate sector. The board meeting held on August 26, 2025 considered the recommendations of the Committee of Independent Directors and the Audit Committee before giving its approval.

The approved scheme involves two stages of amalgamations. First, the merger of Distinctive Realty Private Limited (DRPL) into and with Amazia Developers Private Limited (ADPL), followed by the amalgamation of ADPL and Nitant Real Estate Private Limited (NREPL) into and with Hubtown Limited. The scheme will be effective from July 1, 2025, subject to regulatory and statutory approvals.

According to the company’s disclosure, the amalgamation is expected to streamline operations, consolidate high-value projects, and create a stronger growth platform. The projects include premium real estate developments such as 25 South at Prabhadevi and 25 Downtown at Mahalaxmi, both expected to attract significant investor and homebuyer interest.

The management highlighted that the mergers will help in achieving greater economies of scale, reduction in overhead costs, and optimal use of resources. The scheme also aims to align valuable assets within a broader business platform, thus enhancing Hubtown’s profile with shareholders, lenders, and strategic partners.

One of the key highlights of the disclosure is the company’s expectation of Rs 6000 crore in pre-sales during FY25, post the completion of the merger process and subject to required approvals. This move is being seen as a step towards positioning Hubtown as a leading player in the Indian real estate and infrastructure development sector.

The share exchange ratio has been determined by an independent registered valuer and fairness opinion from a SEBI-registered merchant banker, ensuring the transaction is carried out at an arm’s length basis. The amalgamation falls under related party transactions, but it has been approved by the Audit Committee as per SEBI’s requirements.

In terms of shareholding, the proposed amalgamations will lead to changes in the equity structure of Hubtown Limited, with the promoter and promoter group shareholding increasing significantly post-merger. The company also disclosed ongoing amalgamation schemes with Saicharan Consultancy Private Limited and 25 West Realty Private Limited, which will further impact the future shareholding pattern.

Overall, the amalgamation scheme approved by Hubtown Limited represents a strategic move to consolidate its group entities, unlock value from premium real estate assets, and create a larger, stronger platform for sustainable growth. The company’s clear focus on scaling its operations, improving efficiency, and tapping into the growing demand for luxury residential projects in Mumbai positions it strongly for the coming years.

With the necessary approvals pending from the NCLT, stock exchanges, shareholders, and creditors, the scheme will now move through regulatory processes before becoming effective. If successfully implemented, Hubtown Limited expects to emerge as a consolidated, efficient, and high-growth real estate company with a robust pipeline of premium projects and enhanced financial performance.

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