Hubtown Ltd shares tumbled over 9% on December 11, extending a sharp sell-off that has now dragged the stock down 25% in just five sessions. The stock closed at ₹229 apiece on Thursday, marking its fifth straight day of losses.
Hubtown Withdraws Preferential Share Issue
The company announced on December 10 that it has withdrawn its proposed preferential issue of shares.
Despite receiving in-principle approvals from both BSE and NSE, Hubtown said that the prospective investors backed out of the deal.
According to the company, investor interest waned due to:
- Uncertain and volatile market conditions
- Delays in approval from stock exchanges
In an official statement, Hubtown clarified that the company will not proceed with the allotment of equity shares under the previously planned preferential issue.
This development triggered fresh selling pressure, weighing heavily on the stock price as investors reacted to concerns over the company’s fundraising outlook.
