Mumbai real estate firm Hubtown faces insolvency proceedings

Mumbai-based real estate company Hubtown has been dragged into insolvency court by International Asset Reconstruction Company Private Limited for apparently defaulting on a payment of Rs 38.25 crore, the realtor said in an exchange filing.

Hubtown said in filing that it is seeking appropriate legal advice and take all appropriate steps to protect its interest in the aforesaid matter.

Formerly known as Ackruti City Limited, Hubtown is one of Mumbai’s leading real estate companies, with over three decades of experience projects covering the entire spectrum of real estate development including Residential, Commercial, IT, Industrial, Infrastructure. Business spread across Mumbai, Thane, Pune, Bangalore, and 4 cities in Gujarat. Over 15 million sq. ft. of construction work already completed.

The company has been founded by Hemant and Vyomesh Shah in 1989.

In 2021-22, Hubtown made a loss of Rs 120 crore on a revenue of Rs 247 crore. The company’s losses were around Rs 150 crore in the previous year.

The company has so far completed eight residential projects and two commercial projects — Hubtown Viva – Phase – II , Jogeshwari (East), Mumbai and Hubtown Solaris Phase – I & Phase-II, Andheri (East), Mumbai.

Hubtown has ongoing nine residential and six commercial projects spread across Mumbai, Pune, Thane and various parts of Gujarat.

The company also has an ongoing IT SEZ project — Sunstream City Phase – I in Mulund-Thane

In its annual report for 2021-22, the company said that FY2021-22 was an exciting year for the real estate sector and Hubtown witnessed second wave led demand deferment in the first quarter, followed by a brisk sales recovery in the later part of the year.

It said that FY2022 – 23 will witness a healthy sales momentum backed by solid structural foundation, sustained demand and relatively affordable mortgage rates. Financially strong and reputed developers with superior execution capabilities stand to benefit disproportionately from the ongoing cyclical upturn.

The company is listed on both BSE and NSE. The shares of the company are trading around Rs 55 apiece.

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