1. Saicharan Consultancy Private Limited Merger Details
- Equity Shareholders and Unsecured Creditors of Hubtown approved the Scheme of Arrangement for amalgamation of Saicharan Consultancy Private Limited with Hubtown Limited at meetings convened pursuant to NCLT Order dated April 9, 2026.
- At the time of Board approval, SCPL held 21.17% equity stake in Rare Townships Private Limited (RTPL), a subsidiary of Hubtown developing the "Rising City" real estate project in Ghatkopar (East), Mumbai.
- The merger is described as a strategic initiative to consolidate Hubtown's ownership in RTPL, positioning the company for enhanced financial growth and long-term value appreciation.
- Under the Scheme, equity shareholders of SCPL will be allotted 648 equity shares of Hubtown (face value ₹10 each) for every 1 equity share of SCPL (face value ₹10), subject to Scheme effectiveness and requisite approvals.
- The merger will increase Hubtown's revenue share in the 'Rising City Ghatkopar' project by 21.17%.
- Project Status: Out of 6 residential buildings, 5 buildings have been completed with Occupation Certificate received, and the last building is expected to be completed by March 2027.
2. 25 West Realty Private Limited Merger Details
- Equity Shareholders of Hubtown approved the Scheme of Arrangement for amalgamation of 25 West Realty Private Limited with Hubtown Limited at a meeting convened pursuant to NCLT Order dated May 4, 2026.
- 25 West Realty Private Limited is developing the super-luxury residential project '25 West' located at Bandra (West), Mumbai.
- The project is expected to generate strong demand and financial returns due to its prime location and premium positioning.
- The merger is intended to enhance the investment profile of the consolidated entity by aligning a high-potential real estate asset with Hubtown's broader business platform.
- Under the Scheme, equity shareholders of 25 West will be allotted 42 equity shares of Hubtown (face value ₹10 each) for every 1 equity share of 25 West (face value ₹10), subject to Scheme effectiveness and requisite approvals.
- The 25 West project is expected to generate total revenue of approximately ₹6,000 crores.
Strategic Rationale and Next Steps
The proposed Schemes are strategic initiatives aimed at consolidating business operations and ownership interests within the group structure. The Schemes are expected to:
- Strengthen the revenue base and profitability through consolidation of business operations
- Consolidate ownership interests in key real estate projects
- Improve operational efficiencies
- Enhance the investment profile and market position of the Company
- Create long-term value for shareholders and other stakeholders
While the Schemes have been approved by Equity Shareholders and Unsecured Creditors with requisite majority, they remain subject to sanction by the NCLT and other statutory and regulatory approvals. The Schemes will become effective only upon fulfilment of conditions set out in the Schemes.